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New Keynesian economics assumes rational expectations, flexible wages, and flexible prices.

BenAff

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New Keynesian economics assumes rational expectations, flexible wages, and flexible prices.

Question 1.

The Lucas supply function incorporates the idea that output depends on the difference between the actual price level and the expected price level.

▸ true

▸ false

Question 2.

New Keynesian economics assumes rational expectations, flexible wages, and flexible prices.

▸ true

▸ false

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

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swolfe15

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More solutions for this book are available here

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