Multiple Choice
In the new Keynesian model
A) wages and prices are assumed to be sticky with respect to expected changes in the price level.
B) only unanticipated policy can affect aggregate output and unemployment.
C) only anticipated policy can affect aggregate output and unemployment.
D) unanticipated policy has no effect on aggregate output and unemployment.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: An anticipated increase in the money supply
Q3: The new classical model has the word
Q4: Wage and price rigidities created by long-term
Q5: The Lucas critique is an attack on
Q6: Kristin the economist argues that an anticipated
Q8: An anticipated increase in the money supply
Q10: The interest rate thought to have the
Q11: Rigidities that diminish wage and price flexibility
Q12: In the new classical macroeconomic model developed
Q18: A rise in short-term interest rates that