Price flexibility is a key feature of ________.
A)traditional Keynesian theory
B)new Keynesian theory
C)real business cycle theory
D)traditional Keynesian,new Keynesian and real business cycle theory

Question

Quizplus · Accepted Answer

Real business cycle theory emphasizes price flexibility, assuming that prices and wages adjust quickly to changes in supply and demand, unlike Keynesian theories which often assume some degree of price stickiness.

Price Flexibility Is a Key Feature of ________