The difference between new classical theory and new Keynesian theory is that
A) in new classical theory wages are assumed to be flexible,and in new Keynesian theory wages are assumed to be somewhat inflexible.
B) in new classical theory wages are assumed to be somewhat inflexible,and in new Keynesian theory wages are assumed to be flexible.
C) adaptive expectations is the dominant expectations theory in new classical theory,and rational expectations is the dominant expectations theory in new Keynesian theory.
D) in new Keynesian theory the short-run aggregate supply curve is vertical,and in new classical theory the short-run aggregate supply curve is upward sloping.
Correct Answer:
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Q50: Q51: Starting from long-run equilibrium,if the public anticipates Q52: According to new classical economists,if a decrease Q53: According to new classical theory,if the public Q54: If the public has rational expectations,
A) the
