A Classical Objection to Keynesian Sticky Price Models Is That

question 51

Multiple Choice

A classical objection to Keynesian sticky price models is that

• A)nominal wages are always fixed.
• B)real shocks are more important than nominal shocks.
• C)it is easier for firms to change prices rather than change output.
• D)it is cheaper for firms to change output rather than change prices.
• E)sticky price models are internally inconsistent.

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