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:

Third-Angle Projection

A standard method of orthographic projection where the object is placed in the bottom right quadrant between the projection plane and the observer.

Top View

The view of an object looking straight down from above, showing the layout and arrangement of its top surface.

Working Drawing

A detailed, dimensioned engineering drawing that provides exact specifications and instructions for the manufacture of a part or system.

Working Drawings

Detailed drawings that provide the specifications required to construct a project, including dimensions, materials, and assembly instructions.