Keynes Argued That Prices and Wages Were Likely to Be

Multiple Choice

Keynes argued that prices and wages were likely to be inflexible during a recession because:

A) unemployment would be high and firms would have little spare capacity.
B) unemployment would be low and firms would have little spare capacity.
C) unemployment would be high and firms would have substantial spare capacity.
D) unemployment would be low and firms would have substantial spare capacity.