The Yd(IS)curve in the New Keynesian model is identical to which of the following in the intertemporal monetary model?
A)the labour supply curve
B)the output supply curve
C)the labour demand curve
D)the output demand curve
E)the total factor productivity curve

Question

Quizplus · Accepted Answer

The Yd(IS) curve in the New Keynesian model represents the output demand curve, which is analogous to the intertemporal monetary model's depiction of how demand for goods and services varies over time in response to changes in interest rates and other economic factors.

The Yd(IS)curve in the New Keynesian Model Is Identical to Which