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:
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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
Q19: The Yd(IS)curve is downward sloping to reflect
Q21: Investment demand shocks in the New Keynesian
Q22: In the New Keynesian model,an increase in
Q23: An increase in the demand for investment
Q24: The advantage of government intervention when a
Q25: In the New Keynesian model,an increase in
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