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Which of the following best reflects Keynes's belief regarding the inflexibility of wage rates in a downward direction?

A) If employers offer wage raises
B) If employees and labor unions adhere to wage cuts
C) If employers offer additional benefits
D) If employees and labor unions resist wage cuts

1 Answer

3 votes

Final answer:

Keynes's belief regarding the inflexibility of wage rates in a downward direction is best reflected by option D) If employees and labor unions resist wage cuts.

Step-by-step explanation:

In the context of Keynes's belief regarding the inflexibility of wage rates in a downward direction, option D) If employees and labor unions resist wage cuts best reflects Keynes's view. Keynes argued that when wages are inflexible, employees and labor unions are likely to resist wage cuts, leading to unemployment. He believed that this resistance to wage cuts could impact business morale and reduce productivity.

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