Both the new Keynesians and the new classical economists have
A) agreed that changes in the price level are unrelated to changes in the money supply.
B) concluded that the U.S. business cycle is dead.
C) advocated the elimination of the Federal Reserve System.
D) adopted the theory of rational expectations.
E) seen their theories become so divergent since the 1960s that they are useless to policy makers.
Correct Answer:
Verified
Q37: In real business cycle models,a favorable supply
Q38: A favorable supply shock
A)pushes the aggregate demand
Q39: That wage and price rigidities cause changes
Q40: Critics of real business cycle models argue
Q41: The belief that the self-regulating capabilities of
Q43: One explanation for why product prices adjust
Q44: The basic distinction between a rigid policy
Q45: The effectiveness of a market economy's self-regulating
Q46: Ampere Electronics estimates that it costs $50,000
Q47: Opponents of policy activism argue that even
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