Multiple Choice
The main difference between classical economists and the Keynesians in explaining the SRAS curve is that
A) classicals argue that prices are rigid,but Keynesians argue that wages are rigid.
B) classicals argue that wages are rigid,but Keynesians argue that prices are rigid.
C) classicals argue that output changes with price changes as long as there is misperception about relative price levels,but Keynesians argue that the SRAS curve is positively sloped for the term of the labour contracts.
D) classicals argue that the SRAS curve is positively sloped because of rational expectations,but Keynesians argue that it is because of the failure of rational expectations.
Correct Answer:

Verified
Correct Answer:
Verified
Q6: If the menu cost theory is true,then
Q28: In the Keynesian model in the short
Q81: Keynesian business cycle theory cannot account for
Q82: According to the Classical model,an anticipated fiscal
Q83: The short run aggregate supply curve is<br>A)positively
Q85: An anticipated fiscal policy in the form
Q86: According to Keynesians,the primary reason money is
Q88: The crowding-out effect refers to a situation
Q90: Keynesian models rely on the sticky-wage assumption.Explain
Q96: The Keynesian theory is consistent with the