Research supporting the new Keynesian model finds that prices are ________.
A) slow to adjust to aggregate demand shocks
B) changed very frequently
C) changed only infrequently
D) not as flexible as wages
Question 2
Macroeconomic forecasting is made more difficult due to the fact that
A) deviations from trend in real GDP are persistent.
B) turning points are hard to predict.
C) there is no regularity in comovements.
D) consumption is smooth.
