How does the original, simplified Keynesian model compare with modern Keynesian analysis?

A) The original Keynesian model assumed price flexibility whereas the modern analysis does not.
B) In both cases, the short-run aggregate supply curve (SRAS) is horizontal.
C) Modern analysis shows an upward sloping SRAS to reflect some price flexibility. The original Keynesian model's SRAS is horizontal and assumes sticky prices.
D) all of the above

C

Economics

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An autonomous tightening of monetary policy

A) causes an upward movement along the monetary policy curve. B) causes a downward movement along the monetary policy curve. C) shifts the monetary policy curve upward. D) shifts the monetary policy curve downward.

Economics

Suppose workers agreed to a contract that guaranteed a real wage increase of 3 percent per year. If the inflation rate was 7 percent over the following year, what is the required increase in the nominal wage to meet the contract requirements?

a. 10 percent b. 3 percent c. 4 percent d. 7 percent e. 1 percent

Economics