The new Keynesian model assumes price and wages are flexible.
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Q16: In the new Keynesian model, a credible
Q17: Credibility of the monetary policymaker is important
Q18: If expectations are rational, the credibility of
Q19: New Keynesian economists believe that EMP cannot
Q20: New classical economists tend to favor non-activist
Q22: Sargent is one of a number of
Q23: If an increase in the money supply
Q24: Reputation plays a role in the credibility
Q25: Lucas stressed the importance of fiscal policy
Q26: Wages and prices adjustments are slow.
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