Like the New Classical Model,the New Keynesian Model

question 19

Multiple Choice

Like the new classical model,the new Keynesian model

• A)concludes that anticipated policies do not affect aggregate output and unemployment.
• B)distinguishes between the effects of anticipated versus unanticipated policy,with anticipated policy having a greater effect.
• C)distinguishes between the effects of anticipated versus unanticipated policy,with unanticipated policy having a greater effect.
• D)assumes that wages and prices are perfectly flexible with respect to changes in the expected price level.

Understand the principles and conditions of pure competition in economics.

Explain the concept of allocative efficiency and how it is achieved in a purely competitive market.

Identify significant entrepreneurs and their contributions to the modern economy.

Describe strategies for earning above-normal profits in a competitive market.

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Definitions:

Food Aversion

A strong dislike or disinclination towards a specific food, often resulting from a negative past experience such as illness.

Behavior Modification

A therapeutic approach designed to change specific undesirable behaviors using reinforcement principles.

Classical Conditioning

The method of instruction where a response is learned by associating a stimulus from the environment with one that occurs naturally.

Unconditioned Stimulus (US)

A stimulus that naturally triggers a response without any prior learning or conditioning.