A Central Concept of New Keynesian Macroeconomics Is That in Setting

question 135

Multiple Choice

A central concept of New Keynesian macroeconomics is that in setting prices and wages,self-interested firms and workers are acting

• A)irrationally,since their self-interest is badly damaged by the ensuing business cycles.
• B)irrationally,since this imposes business cycles on everyone not part of their arrangements.
• C)rationally,since they do not bear a fully offsetting cost of business cycles.
• D)rationally,since the total welfare loss of business cycles must be small enough to justify the price and wage setting.

---

Definitions:

Hydrogen Bonds

Weak bonds between partially positive hydrogen atoms and partially negative elements like oxygen or nitrogen, crucial in biological structures.

pH Scale

A measure of the acidity or basicity of an aqueous solution, ranging from 0 (most acidic) to 14 (most basic) with 7 as neutral.

Hydrogen Ion

A positively charged ion or proton, H+, which is common in acid-base reactions in chemistry and biological systems.

Structural Organization

Refers to the way in which different parts of an organism or system are arranged and work together.