Keynes Believed That

question 197

Multiple Choice

Keynes believed that

• A) the internal structure of the economy is extremely competitive and that wage-price flexibility exists.
• B) monopolistic elements in the economy prevent immediate and sharp price declines in response to falling demand.
• C) even though there are monopolistic elements in the economy,wage-price flexibility exists.
• D) in spite of the competitiveness of the economy,wage-price flexibility does not exist.

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Definitions:

Wrongful Rejection

The unjustified refusal of a buyer to accept goods or services as stipulated in a contract.

Good Faith

The genuine intention to act without taking an unfair advantage over another party in a transaction.

Honest In Fact

A standard requiring parties in certain transactions to act with genuine intent without deceit or fraud.

Commercial Standards

Agreed-upon practices or criteria within a business sector regarding the quality and conduct of commercial activities.