Much of Macroeconomic Theory Has Been Developed Under the Simplifying

Multiple Choice

Much of macroeconomic theory has been developed under the simplifying assumption that relative prices and wages are fixed,or equivalently that the economy is producing one good using one input (labor) with one wage rate.Such an assumption is clearly ________ of New Keynesian macroeconomics,given its emphasis on the importance of ________ in explaining business cycles.

A) part,profit maximization
B) part,staggered contracts
C) not part,profit maximization
D) not part,staggered contracts