If there is unemployment, the average wage rate will decline as the unemployed workers choose lower wages rather than going without a job. the demand curve for labor slopes downward and to the right so that more workers would be hired at the lower wage rate, restoring full employment.
1. according to the keynesian view, this quote is
a. incorrect because widespread unemployment would cause wages to rise, not decline.
b. incorrect because the demand for labor, other things constant, will not be negatively related to wages.
c. incorrect because wages and prices tend to be highly inflexible downward.
d. essentially correct.

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business. true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.