New Keynesians believe that anticipated policies have some short-term effects due to wage and price stickiness.
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Q8: If prices (and wages) are flexible and
Q9: In the new classical framework, inflation can
Q10: Compared to the standard IS-LM model, the
Q11: The short-run effect of unanticipated policy changes
Q12: In the new classical framework, fiscal policy
Q14: Longer term contracts between firms and suppliers
Q15: Unlike new Keynesian models, new classical models
Q16: In the new Keynesian model, a credible
Q17: Credibility of the monetary policymaker is important
Q18: If expectations are rational, the credibility of
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