This topic contains a solution. Click here to go to the answer

Author Question: What is the main difference between new Keynesian economists and monetarists? a. Monetarists ... (Read 97 times)

bio_gurl

  • Hero Member
  • *****
  • Posts: 524
What is the main difference between new Keynesian economists and monetarists?
 a. Monetarists support a fixed-price model, whereas new Keynesians believe that pricesfluctuate.
 b. Monetarists reject the idea that government intervention can stabilize the economy,whereas new Keynesians support this notion.
 c. Monetarists believe that the aggregate supply curve is always horizontal, whereas newKeynesians believe that the aggregate supply curve is always vertical.
 d. Monetarists believe that an increase in the money supply changes real GDPinstantaneously, whereas new Keynesians assume that economic policy operates witha long and variable lag.
 e. Monetarists believe that deficit spending helps stimulate economic growth, whereas new Keynesians advocate a balanced budget.

Question 2

If the measured elasticity of supply coefficient equals 1.3, then supply is:
 a. perfectly elastic.
  b. elastic.
 c. unit elastic.
 d. inelastic.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kbennett34

  • Sr. Member
  • ****
  • Posts: 333
Answer to Question 1

b

Answer to Question 2

b




bio_gurl

  • Member
  • Posts: 524
Reply 2 on: Jun 30, 2018
Wow, this really help


bbburns21

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

For a complete list of videos, visit our video library