The main difference between New Classical and New Keynesian models of the economy is
A) the long- run path of output.
B) the long- run path of wages.
C) the degree of wage and price flexibility in the short run.
D) the long- run path of employment.
E) the tendency for output to return to potential in the long run.
Correct Answer:
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Q48: Suppose in a given month the flow
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Q51: Another name for "frictional" unemployment is
A)structural unemployment.
B)search
Q52: The economy in the diagram below begins
Q54: The labour market in the diagram below
Q55: The theory of "efficiency wages" suggests that
Q56: When aggregate output is greater than potential
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Q58: The total amount of unemployment in the
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