Which of the Following Statements Is True

question 11

Multiple Choice

Which of the following statements is true?

• A) Keynes believed wages are inflexible downward but prices (of goods and services)are flexible.
• B) Keynes believed an economy could get stuck in a recessionary gap.
• C) Keynes originated the idea of efficiency wages.
• D) Keynes believed the economy is self-regulating.
• E) b and c

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Definitions:

Complements

Goods or services that are used together such that an increase in the price of one causes a decrease in the demand for the other, like coffee and sugar.

Farming Production

The process and output involved in cultivating crops and livestock, contributing to the agricultural sector's overall productivity.

Wages And Rents

Payments made to workers for their labor and to property owners for the use of their property, respectively.

Diminishing Returns

Diminishing returns refer to a point at which the level of profits or benefits gained is less than the amount of money or energy invested.