Both the New Classical and New Keynesian Models Had in Common

question 57

Multiple Choice

Both the new classical and new Keynesian models had in common the belief that

• A)in the medium run, output returns to its natural level.
• B)output is always at its natural level.
• C)in the short run, output would likely deviate from its natural level.
• D)none of the above

---

Definitions:

Prefrontal Cortex

The front part of the frontal lobes of the brain, involved in complex cognitive behaviors such as decision making, personality expression, and moderating social behavior.

Temporal Lobe

A region of the brain involved in processing auditory information and encoding memory.

Working Memory

A cognitive system responsible for temporarily holding information available for processing, important for reasoning and the guidance of decision-making and behavior.

Central Executive

The process that coordinates rehearsal systems and retrieves memory from and transfers information to permanent memory.