A Theory Suggesting That Price Stickiness Leads to Sluggish Short-Run

question 234

Multiple Choice

A theory suggesting that price stickiness leads to sluggish short-run adjustment of the price level to variations in aggregate demand is known as

• A) new Keynesian flexible-price business cycles.
• B) new Keynesian inflation dynamics.
• C) real-business-cycle fixed-price business cycles.
• D) real-business-cycle inflation dynamics.

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