Question

Which of the followings is not one of the assumption of the new Keynesian model?

Please choose one:

a.  Prices are flexible.

b. wages are sticky

c. expectations are rational

D. Prices are sticky

2.

The IS curve traces out the combinations of the interest rate and aggregate output for which the money market is in equilibrium, and the LM curve traces out the combinations for which the market for goods and services are in equilibrium.

Select one of them:

Right

False

3,

The ................................................. ........ assumes that expectations are rational and that wages and prices are completely flexible with respect to the expected price level.

Please choose one:

a. New classical macroeconomic model

b. New keynesian model

c. Traditional model

D. None of the above

4.

Expansionary monetary or fiscal policy can affect output in the short run, neither affects output in the long run.

Select one of them:

Right

False

Answer 1

1) a. Prices are flexible.

Option a is correct.

2) false

3) a. New classical macroeconomic model

4) Right

If you have any doubts please comment...