The belief that wages are "sticky downwards" was held by:
A. Keynes, but not the classical macroeconomic theorists.
B. neither Keynes nor the classical macroeconomic theorists.
C. the classical macroeconomic theorists, but not Keynes.
D. both Keynes and the classical macroeconomic theorists.
Answer: A
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The percentage change in the price level from one period to another is called
a. the growth rate. b. the inflation rate. c. the GDP deflator. d. the unemployment rate.
Increases in the total real output of many DVCs do not increase the nation's standard of living because:
A. diminishing returns may be encountered in increasing total output. B. population increases may dissipate the increase in real output. C. disguised unemployment in agriculture will persist. D. surplus farm labor may move from rural areas to industrial areas, causing unemployment.