According to the Keynesian model, real wages should

A) remain constant.
B) fall during recessions.
C) rise during recessions.
D) stay the same during recessions but rise during expansions.

C

Economics

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When the credit demand curve is relatively flat:

A) the quantity of credit demanded is relatively sensitive to changes in the real interest rates. B) the quantity of credit demanded is relatively sensitive to changes in the taxation rates. C) the quantity of credit demanded is not responsive to changes in the taxation rates. D) the quantity of credit demanded is not responsive to changes in the real interest rate.

Economics

There is a 50 percent decrease in the price of lumber used by a firm that builds new homes. This causes

A) a decrease in the quantity of new homes supplied. B) an increase in the supply of new homes. C) an increase of the quantity supplied of new homes. D) a decrease in the supply of new homes.

Economics