In the new Keynesian models,

Related MCQs

• In real business cycle models, business cycles are caused by ------------------,while in new Keynesian model business cycles are caused by-------------------
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• In real business cycle models and new classical models
• New Keynesian would agree with all of the following except
• New Keynesian theories of efficiency wages imply
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• Suppose that the MPC out of disposable income was 0.8 and the tax function for a given economy was T= -30+0.25Y. an increase in the intercept of the tax function of 10 units(from -30 to -20 would cause equilibrium income in the simple Keynesian model to fall by
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• According to the Keynesian model, the optimal fiscal policy is to
• A usual assumption in real business cycle models is that the economy is populated by a group of identical individuals and the behavior of the group can then be explained in terms of the behavior of one individual, called a-------------