Roger and Brian have a discussion about cost minimization in firms during a recession. Roger stresses that company can reduce its costs by paying workers lower wages during a recession

a. Brian disagrees and argues that a company cannot reduce wages as price levels and wages do not adjust easily in the short run. Who do you think is correct? Give reasons to support your answer.

Roger's statement is based on the classical economic framework, which stresses flexible wages and prices. Brian's statement is based on the Keynesian economic framework. The Keynesian framework is based on the assumption that prices and wages are sticky and do not adjust quickly. The Keynesian economic framework seems to predict more accurately in the short run, although the classical economic framework may be true in the long run.