Question

What are the implications of wages being "sticky downward"? (check all that apply)
     
          Employers will lay off workers rather than cut wage rates
          Disequilibrium can persist in labor markets
          The aggregate supply curve will not fall enough to bring the economy back to potential GDP
          A recessionary equilibrium can persist



What did Keynes mean when he said: "In the long-run we are all dead"?   
     
          All people eventually die
          There is no hope for economic conditions to improve
          The long-run is not the appropriate time frame when we are in a recession
          Death rates rise during a recession
           

Answer 1

What are the implications of wages being "sticky downward"?

Answer: Employers will lay off workers rather than cut wage rates.

Explanation: Employees will fight against wage cuts , therefore employers in order to reduce cost , will layoff employees rather than wage cut for existing employees.

What did Keynes mean when he said: "In the long-run we are all dead"?   

Answer: According to keynes , if govt provides very high austerity measures to support Economy without thinking of future, it will lead to huge debt trap for future generations.