Keynes Believed That Prices Were ____ and That Recessions Would

question 78

Multiple Choice

Keynes believed that prices were ____ and that recessions would be relatively ____.

• A) inflexible; long
• B) inflexible; brief
• C) flexible; brief
• D) flexible; long

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Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced by the business, such as rent and salaries.

Variable Costs

Costs that vary directly with the level of production or service volume.

Gross Margin

The difference between sales revenue and the cost of goods sold, indicating the profitability of products sold before other expenses.