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We can explain the persistence of unemployment in an aggregate demand - aggregate supply model by assuming that There is downward wage rigidity All unemployment
We can explain the persistence of unemployment in an aggregate demand aggregate supply model by assuming that There is downward wage rigidity All unemployment is structural There has been an adverse supply shock The Phillips curve is downward sloping Which of the following might shift the aggregate demand curve to the right An increase in government expenditure funded by borrowing A reduction in bank lending Inflation resulting from trade unions negotiating higher wages Falling demand for the country's goods and services in the rest of the world We expect the equilibrium of the income determination model to be stable because it occurs when there is full employment The marginal propensity to save is less than one there is downward wage rigidity The marginal propensity to consume is less than one
We can explain the persistence of unemployment in an aggregate demand aggregate supply model by assuming that
There is downward wage rigidity
All unemployment is structural
There has been an adverse supply shock
The Phillips curve is downward sloping
Which of the following might shift the aggregate demand curve to the right
An increase in government expenditure funded by borrowing
A reduction in bank lending
Inflation resulting from trade unions negotiating higher wages
Falling demand for the country's goods and services in the rest of the world
We expect the equilibrium of the income determination model to be stable because
it occurs when there is full employment
The marginal propensity to save is less than one
there is downward wage rigidity
The marginal propensity to consume is less than one
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