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What fundamental problem does the New Keynesian model have, when compared to the data?

Ao9

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Posts: 1908

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8 years ago

What fundamental problem does the New Keynesian model have, when compared to the data?

What fundamental problem does the New Keynesian model have, when compared to the data?
A) Aggregate output demand does not matter.
B) Prices do not fluctuate in the right way.
C) The real wage moves too little.
D) Investment fluctuates more than consumption.

Textbook

Macroeconomics

Macroeconomics

Edition: 5^th

Author: Williamson

Read 147 times

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Gordis

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Posts: 1906

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8 years ago

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Ao9 Author

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#2

8 years ago

Wow!!

Gordis

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#3

8 years ago

You're welcome Wink Face

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