Unlike new Keynesian models, new classical models assume rational expectations.
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Q10: Compared to the standard IS-LM model, the
Q11: The short-run effect of unanticipated policy changes
Q12: In the new classical framework, fiscal policy
Q13: New Keynesians believe that anticipated policies have
Q14: Longer term contracts between firms and suppliers
Q16: In the new Keynesian model, a credible
Q17: Credibility of the monetary policymaker is important
Q18: If expectations are rational, the credibility of
Q19: New Keynesian economists believe that EMP cannot
Q20: New classical economists tend to favor non-activist
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