New Keynesian economists believe that
a. movements in unemployment can be explained by voluntary movements in and out of the labor market..
b. everyone who is not working is involuntary unemployed.
c. labor markets clear in the long-run.
d. the new classical model has merit, but recessions cannot be adequately explained in a model of with perfectly flexible prices and wages.
D
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A supply curve describes
a. the relationship between price and quantity demanded b. the relationship between price and quantity supplied c. the relationship between a group of buyers and sellers d. none of the above
If a firm that produces honey is facing elastic demand, then the firm would decrease price to increase revenue
a. True b. False Indicate whether the statement is true or false
Which of the following would cause a decrease in the short-run aggregate supply curve (SRAS)?
a. An advance in technology b. An increase in the CPI c. An increase in oil prices d. An increase in the long-run aggregate supply curve (LRAS)
If a competitive firm is in short-run equilibrium, then:
A. marginal revenue is equal to marginal cost. B. price is greater than marginal cost. C. price is equal to average variable cost. D. price is greater than marginal revenue.