New Keynesian economics is built on
I. the Keynesian approach
II. the monetarist approach
III. the new classical approach
A) I only
B) I and II only
C) II and III only
D) I, II, and III

Question

New Keynesian economics is built on 
I. the Keynesian approach
II. the monetarist approach
III. the new classical approach
A) I only
B) I and II only
C) II and III only
D) I, II, and III

Quizplus · Accepted Answer

New Keynesian economics incorporates elements from the Keynesian approach, such as the importance of aggregate demand, as well as insights from the monetarist and new classical approaches, including rational expectations and the role of monetary policy.

New Keynesian Economics Is Built on