Which explanation for persistent unemployment used by the original Keynesian model is no longer needed in the new Keynesian model?
A) shifting IS curve
B) a fixed nominal wage
C) aggregate supply curve is a function of the nominal wage
D) rigid wages and prices
B
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An individual may borrow a certain sum of money from any of the three banks in his town
Bank 1 offers him loans at an annual rate of 5%, Bank 2 offers him loans at an annual rate of 3% per year, and Bank 3 offers him a loan at an annual rate of interest of 10%. A rational individual will: A) borrow from Bank 2. B) borrow from Bank 1. C) borrow from Bank 3. D) be indifferent about borrowing from any of the three banks.
A consequence of an incentive contract for employees is that
a. employees must incur additional risk b. employee level risk is reduced c. employer level risk is reduced d. there are no risk related consequences
The implementation of choice architecture that alters people's behavior in a deliberate and predictable way without changing economic incentives much is called:
A. influencing through choice. B. nudging. C. shifting. D. baiting.
If the value of an economy's imports exceeds the value of that economy's exports, then net exports is a negative number
a. True b. False Indicate whether the statement is true or false