According to the new Keynesians: a. prices adjust to equate ...

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According to the new Keynesians:
 a. prices adjust to equate demand and supply in every market simultaneously.
  b. random variations in the money supply are the original source of economic fluctuations.
  c. unemployment is voluntary.
  d. aggregate supply shocks can be a prime source of economic instability.
  e. government policy cannot stabilize the economy.

Question 2

Which of the following is associated with a more elastic demand curve?
 a. availability of many close substitutes
 b. a greater amount of time for consumers to respond to a price change
  c. a large percentage of income spent on the good in question
 d. all of the above

[Jayson]

Answer to Question 1

d

Answer to Question 2

d

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Thank you

[Jayson]

Happy to help you