Which of the following schools of thought among economists believe that unexpected changes in the money supply can affect output in the short run?
A)Only new Keynesian
B)Only new Keynesian and new classical
C)Only new Keynesian and real business cycle
D)New Keynesian, new classical, and real business cycle

Question

Quizplus · Accepted Answer

Both New Keynesian and New Classical economists agree that unexpected changes in the money supply can affect output in the short run, though they may differ in their explanations of how and why this occurs. New Keynesian economists emphasize price and wage stickiness, while New Classical economists focus on rational expectations. Real Business Cycle theorists, on the other hand, generally argue that real shocks, rather than monetary shocks, are the primary drivers of business cycles.

Which of the Following Schools of Thought Among Economists Believe