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Which of the Following Is True About New Keynesian Economics

question 54

Multiple Choice

Which of the following is true about new Keynesian economics?
I. It incorporates monetarist ideas about the importance of monetary policy.
II. It incorporates new classical ideas about the importance of aggregate supply.
III. It includes a greater use of microeconomic analysis in macroeconomic analysis than Keynesian economics.
IV. Unlike Keynesian economics, it is opposed to active stabilization policies.

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Definitions:

Specific Age

A particular point or period in the life of an organism or an object, often used in the context of growth, development, or legal status.

Same Order

Maintaining the original sequence or arrangement of items or elements without alteration.

Formal Operations

The fourth stage in Piaget's theory of cognitive development, characterized by the ability to think logically about abstract concepts.

Concrete Operations

A stage in Piaget's theory of cognitive development where children begin to think logically about concrete events.

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