The school of thought that holds that, in the macroeconomy, prices and wages are inflexible, or "sticky,"downward is:
A) classical economics.
B) new classical economics.
C) new Keynesian economics.
D) all of the above.

Question

Quizplus · Accepted Answer

New Keynesian economics posits that prices and wages are "sticky" downward, meaning they do not easily adjust to changes in the economy, particularly in the short run. This contrasts with classical and new classical economics, which generally assume that prices and wages are flexible.

The School of Thought That Holds That, in the Macroeconomy