New Keynesian would agree with all of the following except

Related MCQs

• The real business cycle theory and the new classical theory agree that
• In the new Keynesian models,
• In real business cycle models, business cycles are caused by ------------------,while in new Keynesian model business cycles are caused by-------------------
• Real business cycle and new Keynesian models disagree upon
• New Keynesian theories of efficiency wages imply
• Suppose that the MPC out of disposable income was 0.8 and the marginal tax rate was 0.25 for a given economy. In this case, the value of the tax multiplier in the simple Keynesian model would be
• 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
• In the simple Keynesian model, if the tax function is given by T=0.15Y and the consumption function is C= 50 + 0.7 YD then a 10-unit ncrease in government spending would increase equilibrium income by
• According to the Keynesian model, the optimal fiscal policy is to
• Under the new trade policy, import licensing was abolished except in case of