It is the existence of rigidities such as sticky wages,not adaptive expectations,that explains why ________ policies can affect real output in the ________ model.
A) unanticipated; new classical
B) anticipated; new classical
C) unanticipated; new Keynesian
D) anticipated; new Keynesian
Correct Answer:
Verified
Q25: Demonstrate graphically and explain the short-run and
Q26: An important feature of the new classical
Q27: In the new Keynesian model
A)wages and prices
Q28: In the new classical model,show graphically and
Q29: The new classical model has the word
Q31: New Keynesians object to which of the
Q32: In the new classical model,an anticipated policy
Q33: In the new classical model,an unanticipated increase
Q34: Wage and price rigidities created by long-term
Q35: Rigidities that diminish wage and price flexibility
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