Multiple Choice
In the New Keynesian model, the output demand curve represents combinations of
A) the price level and the level of output at which the goods market and the labour market are in equilibrium.
B) the price level and the level of output at which the goods market is in equilibrium.
C) the real interest rate and the level of output at which the goods market and the labour market are in equilibrium.
D) the real interest rate and the level of output at which the goods market is in equilibrium.
E) the real interest rate and the price level at which the goods market is in equilibrium.
Correct Answer:

Verified
Correct Answer:
Verified
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