The New Keynesian model and the monetary intertemporal model is essentially identical except that
A) nominal and real interest rates are permitted to fluctuate.
B) Bank of Canada policy is restricted.
C) total factor productivity is neutral.
D) money is neutral.
E) the price level is not sufficiently flexible for the goods market to clear in the short run.
Correct Answer:
Verified
Q8: Prices may be sticky in the short
Q9: Keynesian sticky price models are typically called
A)
Q10: The natural rate of interest is
A) the
Q11: In the New Keynesian model,the output demand
Q12: In the New Keynesian model,the central bank's
Q14: When the central bank targets the interest
Q15: The Yd(IS)curve in the New Keynesian model
Q16: In 1936,Keynes described his views on the
Q17: In the New Keynesian model,an increase in
Q18: In the long run,most Keynesians believe
A) government
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