The standard IS curve is adjusted in new Keynesian theory to account for ________
A) the forward-looking behavior of households and firms
B) the difference between real and nominal variables
C) changes in GDP, or Gross Domestic Product
D) the impact of a rising national debt
A
You might also like to view...
Which of the following statements is false?
A. Greater distance reduces the likelihood of migration B. Greater stocks of human capital result in greater personal productivity and earnings C. The majority of international migrants move to countries relatively close to their home countries D. Implicit costs of migrating are not affected by distance
Tax saving so that people spend more and firms' profits are higher
Answer the following statement(s) true (T) or false (F)
The income elasticity of demand is ________ if the good is ________ good
A) positive; a normal B) positive; an inferior C) negative; a normal D) less than one; an inferior E) positive; a substitute
Globalization was much more pervasive in the 1800s than it is today
a. True b. False Indicate whether the statement is true or false