Changes in the Money Supply in the New Keynesian Model

question 52

Multiple Choice

Changes in the money supply in the New Keynesian model are not a likely explanation of the typical business cycle, because the model counterfactually predicts that

• A) consumption is procyclical.
• B) the real wage is countercyclical.
• C) the real wage is procyclical.
• D) employment is procyclical.
• E) investment is procyclical.

---

Definitions:

Symbolic Ethnicity

Is a nostalgic allegiance to the culture of the immigrant generation, or that of the old country, that is not usually incorporated into everyday behaviour.

Herbert Gans

An influential sociologist known for his work in urban sociology, community studies, and the role of media in society.

Multiculturalism

A societal approach that recognizes, values, and promotes cultural diversity and the coexistence of different cultural backgrounds and traditions.

Cultural Heritage

The legacy of physical artifacts and intangible attributes of a group or society passed down from generation to generation.