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John Maynard Keynes Believed That Wages May Be Inflexible in the Downward

Question 21

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John Maynard Keynes believed that wages may be inflexible in the downward direction.Consequently,an economy


A) could get stuck in long-run equilibrium.
B) could get stuck in a recessionary gap.
C) could get stuck in an inflationary gap.
D) would always produce more than Natural Real GDP.
E) b and c

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