The New Keynesian Economics Differs from the New Classical Theory

question 60

Multiple Choice

The new Keynesian economics differs from the new classical theory with respect to their assumptions concerning

• A)the shape of the aggregate demand curve.
• B)price flexibility.
• C)the importance of interest rates in determining investment spending.
• D)the shape of the short-run aggregate demand curve.

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Definitions:

Shih Hwang-ti

The founder of the Qin dynasty in ancient China, known for unifying the country and for his role in beginning construction of the Great Wall of China.

Philosophers

Individuals devoted to studying and producing texts in the discipline of philosophy, which involves exploring questions about existence, knowledge, values, reason, mind, and language.

Censorship

The practice of officially examining books, movies, news reports, and other media, and suppressing unacceptable parts.

Sodium Levels

the concentration of sodium ions, essential for body fluid balance but high levels can lead to health issues.