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In the Keynesian framework, we assume that in the long-run prices are sticky. True or False.

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Related questions

What is the underlying assumption for the Keynesian economic framework?

Which of the following assumptions is based on a Keynesian economic framework?

a. The aggregate demand curve can be shifted to the left through an increase in government spending.

b. Changes in aggregate demand prices do not cause wages and prices to quickly adjust because they are both sticky.

c. A large increase in government services is affordable to the tax base.

The long-run aggregate supple curve is vertical because:

a. all input prices are sticky in the long run.

b.all input prices are flexible in the long run.

c.firms cannot change prices or input prices in the long run.

d.some input prices are sticky in the long run.

Because of the effect of sticky prices on real GDP in the short-run, the new Keynesian advocate what type of policymaking?

A. Active

B. Passive

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