What Is the Main Difference Between New Keynesian Economics and Monetarists

question 91

Multiple Choice

What is the main difference between new Keynesian economics and monetarists?

• A)Monetarists support a fixed-price model, whereas new Keynesians believe that prices fluctuate.
• B)Monetarists reject the idea that government intervention can stabilize the economy, whereas new Keynesians support this notion.
• C)Monetarists believe that the aggregate supply curve is always vertical, whereas new Keynesians believe that the aggregate supply curve is always horizontal.
• D)Monetarists believe that an increase in the money supply changes real GDP instantaneously, whereas new Keynesians assume that economic policy operates with a long and variable lag.
• E)Monetarists believe that deficit spending helps stimulate economic growth, whereas new Keynesians advocate a balanced budget.

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Definitions:

Job-Order Costing

An accounting practice that tracks the costs associated with a specific job or batch of goods, capturing direct labor, materials, and overhead.

Predetermined Overhead Rate

A rate calculated at the start of an accounting period to allocate overhead costs to products or services produced.

Machine-Hours

The total time that machinery is operating and engaged in production activities during a specified period.

Job T687

A specific job or project identifier used within a job costing system to track costs and progress.