According to Keynesian economists,why are prices and wages often inflexible?
A)Because of the existence of large corporations and unions.
B)Because of high unemployment.
C)Because of government regulation of the market.
D)Because the AS curve is vertical.
E)Because the AD curve is horizontal.

Question

Quizplus · Accepted Answer

Keynesian economists argue that prices and wages are often inflexible due to the presence of large corporations and unions, which can set prices and wages above equilibrium levels, leading to rigidity.

According to Keynesian Economists,why Are Prices and Wages Often Inflexible