One of the major weaknesses of the original Keynesian approach to the business cycle was
A) the assumption that firms were perfectly competitive.
B) the failure to explain why wages were rigid.
C) the denial of the existence of the Pigou effect.
D) the assumption that the demand for labor depended on the real wage.
Correct Answer:
Verified
Q1: According to Gordon which of the following
Q3: Which of the following is an important
Q4: The actual real wage must be below
Q5: In the fooling model,should an expansion of
Q6: In the fooling model's labor market diagram,from
Q7: In the "fooling" model,it is assumed that
Q8: In the fooling model's AD/SAS/LAS diagram,short-run equilibria
Q9: In the fooling model,suppose that from an
Q10: A principle difference between the new Classical
Q11: The "fooling" model was developed by economist
A)Milton
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents