Which of the following thoughts do the Keynesian and the new Keynesian economists share?
A)The belief that wages and prices are not flexible in the short run
B)The belief that the aggregate supply curve is always a horizontal line
C)The belief that the government's role in the economy should be minimized
D)The belief that the natural rate of unemployment in an economy is always zero
E)The belief that only unexpected changes can affect real GDP

Question

Quizplus · Accepted Answer

Both Keynesian and new Keynesian economists believe that wages and prices are sticky in the short run and do not adjust quickly to changes in demand or supply.

Which of the Following Thoughts Do the Keynesian and the New