New Keynesian Economics Differs from Real Business Cycle Economics in That

question 34

Multiple Choice

New Keynesian economics differs from real business cycle economics in that

• A)markets are perfectly competitive in new Keynesian models.
• B)business cycles are fluctuations in the natural rate of unemployment in new Keynesian models.
• C)wages and prices are perfectly flexible.
• D)agents maximize utility in the new Keynesian model.
• E)none of the above.

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Definitions:

Massachusetts

A state in the northeastern United States, known for its significant historical, academic, and technological influence.

Brutality

Savage physical violence; great cruelty.

Physical Coercion

The use of physical force or threats to compel someone to do something against their will.

Gender Identity

An individual's personal sense of their own gender, which may or may not correspond to the sex assigned at birth.