In a new Keynesian model:

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In a New Keynesian model, various elements can exhibit different cyclical behaviors. Money is often found to be procyclical, meaning it tends to increase in times of economic expansion and decrease in times of recession, which aligns with the model's predictions. The price level can be countercyclical, as the model suggests, decreasing when the economy is doing well and increasing during downturns, which is also supported by data. Lastly, the average product of labor is theoretically countercyclical in these models, indicating it should decrease in good times and increase in bad times, but data shows it to be weakly procyclical, meaning it slightly increases in good times and decreases in bad times. Thus, all of the statements reflect aspects of the New Keynesian model and their alignment or slight deviation from empirical data.

In a New Keynesian Model