The argument that the nominal wage is fixed because of long-term labour contracts
A) explains sticky price models.
B) closely fits the real world..
C) does not take into account why such a contract would be written.
D) explains equilibrium business cycle models..
E) means that productivity shocks are an important cause of business cycles..
Correct Answer:
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Q49: Different business cycle models
A) have similar implications
Q50: Compared to fiscal policy,the monetary policy lag
Q51: Using the New Keynesian model,determine the effects
Q52: According to the Taylor Rule estimated by
Q53: Compared to fiscal policy,the monetary policy lag
Q55: Compared to monetary policy,fiscal policy leads to
A)
Q56: Applying the Taylor Rule estimated by Glenn
Q57: In the New Keynesian model,an increase in
Q58: In the New Keynesian model,an increase in
Q59: According to the New Keynesian model,in a
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