What is the main difference between new Keynesian economists and monetarists?
a. Monetarists support a fixed-price model, whereas new Keynesians believe that pricesfluctuate
b. Monetarists reject the idea that government intervention can stabilize the economy,whereas new Keynesians support this notion.
c. Monetarists believe that the aggregate supply curve is always horizontal, whereas newKeynesians believe that the aggregate supply curve is always vertical.
d. Monetarists believe that an increase in the money supply changes real GDPinstantaneously, whereas new Keynesians assume that economic policy operates witha long and variable lag.
e. Monetarists believe that deficit spending helps stimulate economic growth, whereas new Keynesians advocate a balanced budget.
b
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Refer to Table 15.3. Based on the data in the table, the primary budget deficit necessary to make fiscal policy sustainable in Saldinia is ________ of GDP
A) -5.3% B) -1.1% C) 1.1% D) 6.5%
Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels
What will be an ideal response?
Refer to the information provided in Figure 7.6 below to answer the question(s) that follow. 
Figure 7.6Refer to Figure 7.6. If the price of capital is $10 and the price of labor is $20, the optimal production technique is
A. A. B. B. C. C. D. D.
If the opportunity cost of corn to wheat is 3:1 in the United States and 5:1 in France, both countries would benefit from trade if the actual terms of trade between corn and wheat were 4:1.
Answer the following statement true (T) or false (F)