Keynes believed that Question 2 options: the internal structure of the economy is extremely competitive and that wage-price flexibility exists. monopolistic elements in the economy prevent immediate and sharp price declines in response to falling demand. even though there are monopolistic elements in the economy, wage-price flexibility exists. in spite of the competitiveness of the economy, wage-price flexibility does not exist.

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03-06-2021
Business

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Keynes believed that Question 2 options: the internal structure of the economy is extremely competitive and that wage-price flexibility exists. monopolistic elements in the economy prevent immediate and sharp price declines in response to falling demand. even though there are monopolistic elements in the economy, wage-price flexibility exists. in spite of the competitiveness of the economy, wage-price flexibility does not exist.

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Andromacheidn Andromacheidn · Answer 1 · 2021-06-04T21:06:29-04:00

Answer:

monopolistic elements in the economy prevent immediate and sharp price declines in response to falling demand.

Explanation:

Keynes believed that the elements of the monopolistic in the economy should protect the instant and the fall in the share price with respect to the decline in the demand. That means when there is a fall in the price so the demand is also falls with regard to the elements of the monopolistic

Therefore as per the given situation, the 2nd option is correct

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