According to the Keynesian theory, the typical firm
A. changes its prices frequently in response to fluctuations in aggregate demand.
B. lowers its prices when inventories are decreasing.
C. does not change its prices immediately when aggregate demand fluctuates.
D. lowers its prices if sales exceed production.
Answer:C
According to the Keynesian theory, the typical firm
A. changes its prices frequently in response to fluctuations in aggregate demand. B. lowers its prices when inventories are decreasing. C. does not change its prices immediately when aggregate demand fluctuates. D. lowers its prices if sales exceed production.