In the New Keynesian Model

question 7

Multiple Choice

In the new Keynesian model

• A)wages and prices are assumed to be sticky with respect to expected changes in the price level.
• B)only unanticipated policy can affect aggregate output and unemployment.
• C)only anticipated policy can affect aggregate output and unemployment.
• D)unanticipated policy has no effect on aggregate output and unemployment.

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Definitions:

September 11

refers to the terrorist attacks that occurred on September 11, 2001, when hijackers took control of four commercial airplanes, crashing two into the New York World Trade Center towers and one each into the Pentagon and a field in Pennsylvania.

Died

The cessation of all biological functions that sustain a living organism, marking the end of its life.

Attacks

Aggressive and violent actions directed towards individuals, groups, or entities, often for ideological, political, or personal reasons.

Hamid Karzai

The first elected President of Afghanistan, serving from 2004 to 2014, known for his efforts to lead the country through a challenging period of reconstruction after decades of conflict.