New Keynesian Economists Generally Argue That

question 282

Multiple Choice

New Keynesian economists generally argue that

• A)there is an exploitable tradeoff between unemployment and inflation.
• B)changes in aggregate demand will have relatively greater effects on real GDP when firms change prices less frequently.
• C)activist policy can be used to reduce the fluctuations in real GDP.
• D)all of the above

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Definitions:

Expectancy Theory

A motivation theory that suggests an individual's behavior is determined by their anticipated results or rewards.

Motivation

The psychological drive that compels individuals to act towards achieving goals or fulfilling needs and desires.

Promotion

An advancement in someone's job or career, often involving increased responsibilities and salary.

Citizenship Behaviour

Voluntary actions by employees that contribute to the organization's environment and well-being, often beyond their job requirements.