A Primary Difference Between the Original and New Keynesian Approaches

question 28

Multiple Choice

A primary difference between the original and New Keynesian approaches is that in the original model nominal wages are ________,while for the New Keynesians nominal wages are ________.

• A)perfectly flexible,slow to adjust
• B)slow to adjust,perfectly flexible
• C)fixed,slow to adjust
• D)slow to adjust,fixed

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Definitions:

Systematic Name

A name given to a chemical substance based on a standardized set of rules, allowing its unique identification.

Systematic Name

The name of a chemical substance based on a specific set of rules, allowing for its unique identification based on its structure.

Compound

A product of two or more elements chemically combined.

Compound

A substance made up of two or more elements chemically combined in a fixed proportion.