The main difference between the New Keynesian model and the basic monetary intertemporal model is that in the New Keynesian model,
A) the price level is sticky in the short run.
B) wages are sticky in the short run.
C) menu costs are insignificant.
D) firms are backward-looking.
E) prices adjust quickly to equate the supply and demand for goods.
Correct Answer:
Verified
Q1: The output gap is the difference between
A)
Q2: In the New Keynesian model, the output
Q3: The Yd(IS)curve is downward sloping to reflect
Q5: In 1936, Keynes described his views on
Q6: In the long run, most Keynesians believe
A)
Q7: The New Keynesian model has the property
Q8: An important feature of the New Keynesian
Q9: Most central banks, including the Bank of
Q10: New Keynesian economics refers to
A) the monetarist
Q11: The key difference between Keynesian and Classical
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