New Keynesian economics assumes:
A) wage and prices are inflexible downward.
B) individual decision making may not result in full employment for an economy.
C) the economy will not automatically return to full employment once unemployment has occurred.
D) all of the above.

Question

Quizplus · Accepted Answer

New Keynesian economics incorporates all these assumptions: wage and price inflexibility, the potential for individual decision-making to not achieve full employment, and the belief that the economy does not automatically return to full employment after a disturbance.

New Keynesian Economics Assumes