the wages of which of the following groups will not adjust quickly course hero

Why are wages and prices assumed to be flexible downwards?

Jan 16, 2020 · Correct! 2007–2009 Question 8 1 / 1 pts Keynesians believe that the private economy will adjust too slowly to economic disturbances, so discretionary macro policy should be used by the government. In response, monetarists argue that _____. the economy does not adjust at all to economic disturbances and therefore should be left alone Correct! the economy …

What happens to the aggregate supply curve when wages are low?

Jun 08, 2015 · View Homework Help - Week 8 Chapter 14 from ECONOMICS 6E at Strayer University. I Assignment: llChapler Etudent: ' _, Instructor: Date: SEZ'HlS Course: Principles OfEconomics {50) I-lomework Time:

What happens to the long-run aggregate-supply curve when unemployment increases?

Nov 26, 2016 · In the long run , nominal and real wages tend to be equal . b . Nominal wages are more flexible downward than upward . c . Nominal wages are more flexible than prices . d . Sustained and continuous cyclical unemployment suggests nominal wages do not fall quickly . e . Nominal wages do not rise during labor shortages .

Is there significant downward rigidity in prices and wages?

A. Cost-of-living adjustment. The labor relations term for a written clause in a labor agreement which permits the parties to negotiated wage rates at some predetermined date during the life of the agreement is: A. Lump sum pay adjustments. B. Cost-of-living adjustment. C. Wage re-opener. D. Open-ended contract.

What is the curve of aggregate demand?

a curve showing the various quantities of total real output that will be offered for sale at various alternative price levels. At equilibrium GDP. Savings does not equal investment, but aggregate demand = aggregate supply. Savings does not equal investment and aggregate demand does not equal aggregate supply.

Does aggregate demand equal aggregate supply?

Savings = investment, but aggregate demand does not equal aggregate supply. Savings = investment and aggregate demand = aggregate supply. Savings = investment and aggregate demand = aggregate supply. According to Keynes, at equilibrium, aggregate demand will always equal which of the following?

What is aggregate demand curve?

the aggregate demand curve. A stock market crash, or any event that causes consumers to cut back in spending and firms to cut back in their investments, reduces aggregate demand at any given price level . (causes a shift in the aggregate demand curve) A change in the expected price level shifts.

Why is the economy in a recession?

According to the sticky-price theory, the economy is in a recession because. not all prices adjust quickly. Over time, firms are able to adjust their prices more fully, and the economy returns to the long-run aggregate-supply curve.

What is recession in economics?

falls, rises. A recession is a period of economic contraction rather than growth. During such periods, the economy produces fewer goods and services; thus, real GDP falls and unemployment rises. A sudden crash in the stock market shifts. the aggregate demand curve.