Two Key Assumptions of New Keynesian Theory Include

question 87

Multiple Choice

Two key assumptions of new Keynesian theory include:

• A) (1)people hold rational expectations,and (2)wages and prices are not completely flexible in the short run.
• B) (1)people hold adaptive expectations,and (2)wages and prices are inflexible.
• C) (1)people hold rational expectations,and (2)wages and prices are flexible.
• D) (1)people hold neither adaptive nor rational expectations and (2)prices are inflexible.
• E) none of the above

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Definitions:

Medical Asepsis

Practices aimed at reducing the number and transmission of pathogens to prevent infection.

Microbes

Microscopic organisms, including bacteria, viruses, fungi, and protozoa, some of which can cause disease.

Diseases

Diseases are abnormal conditions affecting the body of an organism, impairing normal functioning, and are often characterized by specific signs and symptoms.

Antiseptic

Substances used on living tissues and cells to decrease the possibility of infection, sepsis, or putrefaction by eliminating or inhibiting the growth of pathogens.