Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Short-run economic fluctuations are made worse because prices are flexible.
B) Short-run economic fluctuations would be less severe if prices were inflexible.
C) If prices were fully inflexible, there would be no short-run economic fluctuations.
D) If prices were fully flexible, there would be no short-run economic fluctuations.