The New Keynesian Model and the Monetary Intertemporal Model Is

question 12

Multiple Choice

The New Keynesian model and the monetary intertemporal model is essentially identical except that

• A) nominal and real interest rates are permitted to fluctuate.
• B) Bank of Canada policy is restricted.
• C) total factor productivity is neutral.
• D) money is neutral.
• E) the price level is not sufficiently flexible for the goods market to clear in the short run.

Calculate equilibrium prices and quantities in a market with and without trade.

Evaluate the impact of tariffs on consumer surplus, producer surplus, tariff revenue, and total surplus.

Understanding the impact of free trade on consumer surplus, producer surplus, and total surplus.

Analyzing the effects of a tariff on market surplus and deadweight loss.

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