The Equation Y = Y* + B(P - Pᵉ),where Y

question 65

Multiple Choice

The equation Y = Y* + b(P - Pᵉ) ,where Y is output,Y* full-employment output,P and Pᵉ are price and expected price levels,respectively,and b is a parameter,

• A)represents Keynesian model of nominal-wage rigidity.
• B)represents Classical model of price misperception.
• C)represents aggregate supply.
• D)All of the above.

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