In Analyzing the Fit of the New Keynesian Model to the Data

Multiple Choice

In analyzing the fit of the New Keynesian model to the data, it is important to

A) recognize that policy is responding to events in the economy.
B) recognize the important contribution of the real business cycle theorists.
C) understand that consumption is countercyclical.
D) assume that monetary policy is irrelevant.
E) understand the role of international trade.