A principle difference between the original Keynesian model and the new Keynesian model is that in the new version

A) the traditional assumptions of profit maximization is no longer included.
B) monetary policy is impotent.
C) wages and prices adjust slowly to market conditions.
D) All of the above are correct.

C

Economics

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What is a Nash equilibrium?

What will be an ideal response?

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When the price level changes, which of the following variables will change and thereby cause a change in the aggregate quantity of goods and services demanded?

a. the real value of wealth b. the interest rate c. the value of currency in the market for foreign exchange d. All of the above are correct.

Economics