New Keynesian Theory

question 62

Multiple Choice

New Keynesian Theory

• A) specifies financial markets as the primary cause of business cycles.
• B) includes microeconomic foundations and does not rely on sticky wages or prices.
• C) relies on sticky wages and prices but does not include microeconomic foundations.
• D) uses the same microeconomic foundations as other macro models.
• E) specifies shocks to technology cause business cycles.

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