A Key Criticism of New Keynesian Models Is

question 32

Multiple Choice

A key criticism of New Keynesian models is

• A) monetary policy is irrelevant.
• B) they don't explain why prices are sticky.
• C) they are never used in practice.
• D) they do not fit the data as well as real business cycle models.
• E) old Keynesian models are better.

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Definitions:

Bacon's Rebellion

A 1676 revolt led by Nathaniel Bacon against the colonial government of Virginia, partially fueled by discontent with how Native American relations were handled.

Colonial Authorities

Officials or governing bodies who exercise control in colonies, often representing the interests of the imperial mother country.

Manumission

The act of a slave owner freeing their slaves; historically common prior to the abolition of slavery.

Louisiana Transfer

Refers to the acquisition of the Louisiana territory by the United States from France in 1803, commonly known as the Louisiana Purchase.