Keynes believed falling wages were not a solution to persistent unemployment because?

(A) falling wages demoralised workers.
(B) this would reduce the purchasing power of labourers as consumers.This in turn would bleaken firms’ prospects of selling more goods,hence inducing them to cut their investment (and hence labour) demand.
(C) the unemployment was caused by frictional and structural factors.
(D) wages would fall more than required to clear the labour market.

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  • An indirect tax is one where:

    (A) Tax is leaved on service
    (B) Tax is leaved always on products
    (C) Points of impact and incidence are the same
    (D) Points of impact and incidence are different

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