The keynesian model argues that prices are sticky. one reason supporting this argument is thata. nominal wages are flexible but real wages are not. b. government price ceilings. c. all unemployment is voluntary. d. nominal wages are inflexible downwards.
since the nominal wage is deemed inflexible, a decrease in aggregate demand causes firms toa. increase wages to increase income so ad increases. b. lower the real wage. c. simply have all workers produce at a slower rate without any unemployment. d. reduce their workforce.

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?