Keynes believed that prices were ____ and that recessions would be relatively ____.
A) inflexible; long
B) inflexible; brief
C) flexible; brief
D) flexible; long

Question

Quizplus · Accepted Answer

Keynes believed that prices were inflexible, meaning that they did not adjust easily or quickly to changes in supply and demand. He also believed that recessions would be relatively long, rather than brief, because of this inflexibility in prices. Therefore, the best choice is A, which reflects both of these beliefs.

Keynes Believed That Prices Were ____ and That Recessions Would