Multiple Choice
The new Keynesians believe that the economy is not always in equilibrium because:
A) unemployment is voluntary.
B) Federal Reserve policy is too restrictive.
C) government intervention destabilizes the economy.
D) wage and price rigidities exist.
E) inflation is too high.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: Keynesian economists today favor a model in
Q6: According to classical economics:<br>A)real GDP is determined
Q7: Traditional Keynesians would argue that fluctuations in
Q8: The effect lag occurs because it takes
Q9: Which of the following events challenged Keynesian
Q11: New classical economists advocate less government intervention
Q12: The _ aggregate supply curve assumed by
Q13: Who is the leading proponent of the
Q14: In the Keynesian region of the aggregate
Q15: Monetarists would argue that in the short