« previous next »

Author Question: Why are aggregate demand shocks not a good explanation of business cycles in the New Keynesian ... (Read 61 times)

saliriagwu

  • Hero Member
  • *****
  • Posts: 537
on: Jun 30, 2018
Why are aggregate demand shocks not a good explanation of business cycles in the New Keynesian model?
 
  A) The wage is not constant.
  B) Employment does not fluctuate.
  C) Prices in the model are procyclical.
  D) Consumption is not procyclical.

Question 2

In Solow's exogenous growth model, the steady-state growth rate of capital can be increased by
 
  A) higher population growth.
  B) higher depreciation rate.
  C) higher saving rate.
  D) higher interest rate.


maya.nigrin17@yahoo.com

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

The Keynesian IS/LM Model The Keynesian IS/LM Model
Jeremy Deller, A Good Day for Cyclists (painted by Sarah Tynan). Jeremy Deller, A Good Day for Cyclists (painted by Sarah Tynan).
Hormonal changes during the ovarian and uterine cycles. Hormonal changes during the ovarian and uterine cycles.
Dried fruits are good source of sulfur Dried fruits are good source of sulfur
Business Math Question Solution Business Math Question Solution
When operating your own business, it is wise to know your cost of capital and that of the ... When operating your own business, it is wise to know your cost of capital and that of the ...
Video: Cavernous Sinus Larynx Middle Ear Orbit: Granulesm Animation

For a complete list of videos, visit our video library