Why are aggregate demand shocks not a good explanation of business cycles in the New Keynesian model?
A) The wage is not constant.
B) Employment does not fluctuate.
C) Prices in the model are procyclical.
D) Consumption is not procyclical.
C
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Money targeting works when the demand for money curve is ________ and predictable. Technological change in the banking system has led to ________ and ________ shifts in the demand for money curve
A) stable; large; predictable B) unstable; large; unpredictable C) stable; small; unpredictable D) stable; small; predictable E) stable; large; unpredictable
Which of the following statement(s) is true?
(a) All state legislatures acted to create corporations. (b) The federal government created the federal incorporated entities when it established the First (1791–1811) and Second (1816–1836) Banks of the United States. (c) All federal, state and local governments possessed the right to create corporations. (d) All of the above are true.
Agriculture price supports that establish a price floor at which agricultural products may be purchased that exceeds the market clearing price
A) create a shortage of agricultural products. B) result in the quantity of these products supplied exceeding the quantity demanded at the floor price. C) benefit taxpayers, who receive subsidies from producers that the price support program forces to sell to the government at an artificially established price. D) benefit consumers, who are willing and able to purchase more agricultural products at the floor price.
Increased productivity in the agricultural sector during much of the twentieth century shifted the
A) demand curve for farm products rightward. B) supply curve of farm products leftward. C) demand curve for farm products leftward. D) supply curve of farm products rightward.