In the New Keynesian View, the Larger the Proportion of Firms

question 66

Multiple Choice

In the new Keynesian view, the larger the proportion of firms in the economy with sticky prices,

• A)the steeper the SRAS curve will be.
• B)the flatter the SRAS curve will be.
• C)the greater the increase in the price level for a given shift in the AD curve.
• D)the less effective is fiscal policy in increasing output.

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Definitions:

AutoNumber

AutoNumber is a feature in database and spreadsheet software that automatically generates a unique numerical identifier for each new record or row added.

Sequential

Pertaining to or forming a sequence, where items follow one another in a logical order or fixed series.

ValueIncrement

A process or method by which a numerical value is increased by a specified amount.

Incremental

Pertaining to a process or increase characterized by gradual, stepwise changes or additions.