John Maynard Keynes fundamentally disagreed with Adam Smith in that according to Keynesian Theory: A.nominal wages and prices are not sticky in the short run. B.nominal wages, prices and interest rates can all be adjusted in the short run. C.interest rates and taxes are inelastic in the short run. D.interest rates and prices are not flexible in the short run.
John Maynard Keynes fundamentally disagreed with Adam Smith in that according to Keynesian Theory: A.nominal wages and prices are not sticky in the short run. B.nominal wages, prices and interest rates can all be adjusted in the short run. C.interest rates and taxes are inelastic in the short run. D.interest rates and prices are not flexible in the short run.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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John Maynard Keynes fundamentally disagreed with Adam Smith in that according to Keynesian Theory:
A.nominal wages and prices are not sticky in the short run.
B.nominal wages, prices and interest rates can all be adjusted in the short run.
C.interest rates and taxes are inelastic in the short run.
D.interest rates and prices are not flexible in the short run.
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