38) In the new Keynesian model, sticky prices may be due to ________. A) involun

ID: 1098874 • Letter: 3

Question

38) In the new Keynesian model, sticky prices may be due to ________.

A) involuntary unemployment.

B) negative productivity shocks.

C) positive productivity shocks.

D) staggered prices.

39) The standard IS curve is adjusted in new Keynesian theory to account for ________.

A) the forward-looking behavior of households and firms.

B) the difference between real and nominal variables.

C) changes in GDP, or Gross Domestic Product.

D) the impact of a rising national debt.

40) Expectations are adaptive in ________.

A) traditional Keynesian models.

B) the Lucas Model.

C) new Keynesian theory.

D) the real business cycle model.

D) staggered prices.

B) the difference between real and nominal variables.

C) new Keynesian theory.

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