Keynes assumed that wages and prices were slow to adjust in order to explain
A)persistently high unemployment.
B)high inflation.
C)the high level of interest rates.
D)why inflation fell in recessions.

Question

Quizplus · Accepted Answer

Keynes assumed that wages and prices were slow to adjust, especially downwards, which led to persistently high unemployment due to a lack of aggregate demand.

Keynes Assumed That Wages and Prices Were Slow to Adjust