Two Key Assumptions of New Keynesian Theory Include

question 87

Multiple Choice

Two key assumptions of new Keynesian theory include:

• A) (1)people hold rational expectations,and (2)wages and prices are not completely flexible in the short run.
• B) (1)people hold adaptive expectations,and (2)wages and prices are inflexible.
• C) (1)people hold rational expectations,and (2)wages and prices are flexible.
• D) (1)people hold neither adaptive nor rational expectations and (2)prices are inflexible.
• E) none of the above

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Definitions:

Part-Time College

Refers to attending college courses or pursuing a degree with a reduced course load, allowing for less than full-time enrollment.

Academic Record

The formal documentation of a student's educational performance and achievements.

Average Cost

The total cost divided by the number of goods or services produced or acquired.

Shares

Ownership stakes in a company or financial asset that are divided equally among shareholders, allowing them to receive proportional shares of any declared profits through dividends.