Author Question: New Keynesian economics assumes rational expectations and (Read 27 times)

Mimi · **on:** Apr 19, 2019

Question 1

Supporters of supply-side economics claim that ________ tax policies were quite successful in stimulating the economy because throughout most of the 1980s, federal receipts continued to rise even though tax rates had been cut.

◦ Jimmy Carter's
◦ Gerald Ford's
◦ Ronald Reagan's
◦ Richard Nixon's

Question 2

New Keynesian economics assumes rational expectations and

◦ sticky prices and wages.
◦ flexible prices and wages.
◦ flexible prices, but sticky wages.
◦ flexible wages, but sticky prices.

ngr69 · **Reply #1 on:** Apr 19, 2019

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