The Neoclassical Models of Macroeconomics

question 55

Multiple Choice

The neoclassical models of macroeconomics

• A) replace the flexible price assumption with an assumption of automatic price adjustments.
• B) keep the flexible price assumption but incorporate informational difficulties into the representation of their adjustment.
• C) keep the flexible price assumption but incorporate a measure of price inertia exerted from the foreign sector.
• D) keep the flexible price assumption but modify the model of the money market to incorporate disequilibrium dynamics.
• E) none of the above.

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Definitions:

Tissue

In multicelled organisms, specialized cells organized in a pattern that allows them to perform a collective function.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, often requiring the identification and separation of fact from opinion.

Quality Of Information

The degree to which information is accurate, reliable, relevant, and easily accessible.

Judging

The process of forming an opinion or conclusion about something or someone, often after careful consideration.