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A Primary Difference Between the Original and New Keynesian Approaches

Question 28

Multiple Choice

A primary difference between the original and New Keynesian approaches is that in the original model nominal wages are ________,while for the New Keynesians nominal wages are ________.


A) perfectly flexible,slow to adjust
B) slow to adjust,perfectly flexible
C) fixed,slow to adjust
D) slow to adjust,fixed

Correct Answer:

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