Multiple Choice
A classical objection to Keynesian sticky price models is that
A) it is easier for firms to change prices rather than change output.
B) it is cheaper for firms to change output rather than change prices.
C) sticky price models are internally inconsistent.
D) real shocks are more important than nominal shocks.
E) nominal wages are always fixed.
Correct Answer:

Verified
Correct Answer:
Verified
Q33: The New Keynesian model predicts that<br>A) money
Q34: In the New Keynesian model,an increase in
Q35: Applying the Taylor Rule estimated by Glenn
Q36: The New Keynesian model has the property
Q37: New Keynesian economics refers to<br>A) the monetarist
Q39: When the central bank targets the interest
Q40: The Yd(IS)curve in the New Keynesian model
Q41: Recent research by Mark Bils and Peter
Q42: In the New Keynesian model,the output demand
Q43: To support the argument for an active