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According to Some New Keynesian Theories, One Possible Rationale for Active

Question 263

Multiple Choice

According to some New Keynesian theories, one possible rationale for active policy making is


A) flexible prices.
B) sluggish adjustment of the price level in response to changes in aggregate demand
C) people are not rational and so do not react to incentives.
D) growing competition in U.S. product markets.

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