The equation Y = Y* + b(P - Pᵉ) ,where Y is output,Y* full-employment output,P and Pᵉ are price and expected price levels,respectively,and b is a parameter,
A) represents Keynesian model of nominal-wage rigidity.
B) represents Classical model of price misperception.
C) represents aggregate supply.
D) All of the above.
Correct Answer:
Verified
Q70: According to the Keynesian IS-LM model,what is
Q71: Which of the following is true about
Q72: An easy fiscal policy generates
A)multiplier effect only.
B)crowding
Q73: The main difference between the Keynesian and
Q74: The reason for disequilibrium in the short
Q76: According to the Classical model,an anticipated fiscal
Q77: The main difference between the short-run and
Q78: The short-run aggregate supply curve is upward
Q79: According to the Keynesian model of nominal-wage
Q80: Which one of the following is NOT
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents