New Keynesians would agree with all of the following except
a. stabilization policy can reduce the severity of business cycles.
b. wages and prices are sticky.
c. markets are perfectly competitive.
d. market equilibrium is often suboptimal.
C
You might also like to view...
According to the above table, as the level of real disposable income increases
A) the APS increases. B) the APC increases. C) the marginal propensity to save declines. D) the marginal propensity to consume increases.
What is the relationship between the marginal revenue curve and the demand curve for a single-price monopoly?
What will be an ideal response?
According to the Monetarists an increase in investment spending initially __________ unemployment so that the price level __________. The resulting __________ in the real money supply __________ spending
A) increases; rises; increase; decreases B) increases; falls; increase; increases C) decreases; falls; decrease; increases D) decreases; rises; decrease; decreases
Suppose you purchase a two-year bond that has a $450 coupon and a face value of $5,000, and immediately after you purchase the bond, new bonds are issued that are otherwise identical, except they have coupons of $375
If you sell your bond, the price of your bond will be A) $4,868.07. B) $5,000.00. C) $5,069.76. D) $5,134.67.