In the New Keynesian Model,sticky Prices May Be Due to ________

question 39

Multiple Choice

In the new Keynesian model,sticky prices may be due to ________.

• A)involuntary unemployment
• B)negative productivity shocks
• C)positive productivity shocks
• D)staggered prices

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Definitions:

Hypotenuse

The largest side of a right-angled triangle, positioned opposite to the right angle.

Sine

The angular relationship of the opposite side of a right triangle and the hypotenuse.

Opposite

Across from.

Hypotenuse

The longest side of a right-angled triangle, opposite the right angle, and determined by the square root of the sum of the squares of the other two sides.