Wage contracts force businesses to adjust wages rather than employment in response to an unexpected change in aggregate demand

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.

In foreign exchange markets, the demand for dollars is determined: a. solely by the level of U.S. merchandise exports

b. solely by the level of U.S. merchandise imports. c. by the level of U.S. imports and the demand for foreign assets by U.S. citizens and the U.S. government. d. by the level of U.S. exports and the demand for U.S. assets by foreigners.