According to new Keynesians, which of the following is NOT an important source of price stickiness?
A)Imperfect competition among sellers in the goods market
B)Government wage and price controls
C)Long-term nominal wage contracts
D)Long-term nominal price contracts

Question

Quizplus · Accepted Answer

New Keynesians believe that government wage and price controls are not an important source of price stickiness because they are rare and temporary measures, and are usually politically unpopular. Instead, they argue that imperfect competition among sellers in the goods market, long-term nominal wage contracts, and long-term nominal price contracts are the main sources of price stickiness.

According to New Keynesians, Which of the Following Is NOT