The short-run effect of unanticipated policy changes is the same for the traditional AS-AD, new Keynesian and new classical models.
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Q6: Central bank independence is the only factor
Q7: Starting from the natural rate, if prices
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
Q12: In the new classical framework, fiscal policy
Q13: New Keynesians believe that anticipated policies have
Q14: Longer term contracts between firms and suppliers
Q15: Unlike new Keynesian models, new classical models
Q16: In the new Keynesian model, a credible
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