Collective bargaining agreement that prohibit wage cuts for the duration of the

Question

Collective bargaining agreement that prohibit wage cuts for the duration of the contract contribute to: A wealth effect A multiplier effect An increase in aggregate supply A price level that is inflexible downward In the aggregate expenditures model of a private closed economy, we analyze a consumption schedule and an investment schedule both of which indicate that as income increases then consumption and investment will increase. True False The short-run version of aggregate supply assumes that product prices are: Fixed while resource prices are flexible Flexible while resource prices are fixed Both input and product prices are flexible Both input and product prices are fixed A downward-sloping investment demand curve and a horizontal investment schedule indicate that investments are inversely related to interest rates but are not affected by the level of income. True False

Explanation / Answer

7.

The statement is true.

With the increase in income, there would be an increase in the spending.

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