Author Question: Traditional Keynesians argued that when wages are rigid, changes in output result in: a. small ... (Read 64 times)

altibaby · **on:** Jun 30, 2018

Traditional Keynesians argued that when wages are rigid, changes in output result in:
a. small changes in goods market prices and a flat aggregate supply curve.
b. large changes in goods market prices and a flat aggregate supply curve.
c. large changes in goods market prices and a steep aggregate supply curve.
d. small changes in goods market prices and a steep aggregate demand curve.
e. small changes in goods market prices and a horizontal aggregate demand curve.

Question 2

A price cut will increase the total revenue a firm receives if the demand for its product is:
a. elastic.
b. inelastic.
c. unit elastic.
d. unit inelastic.