A primary difference between the original and New Keynesian approaches is that in the original model nominal wages are ________, while for the New Keynesians nominal wages are ________

During an inflationary period, a household with savings of $100,000

A) loses because inflation increases the real tax on the interest paid. B) gains because the inflation gives savers more money and so more purchasing power. C) loses because the inflation increases the after-tax real interest rate. D) gains because inflation increases the value of their savings. E) neither gains nor loses because inflation does not affect savers.

The tradeoffs faced by a society can be illustrated in a graph known as the:

a. production operations curve. b. production cost curve. c. production cost model. d. production cost forecast curve. e. production possibilities curve.