Give at least two major differences between the new classical and the new Keynesian economics.

New Keynesian economics is a school of macroeconomics that strives to provide microeconomic foundations for Keynesian economics. It developed partly as a response to criticisms of Keynesian macroeconomics by adherents of new classical macroeconomics.

Two main assumptions define the New Keynesian approach to macroeconomics. Like the New Classical approach, New Keynesian macroeconomic analysis usually assumes that households and firms have rational expectations. However, the two schools differ in that New Keynesian analysis usually assumes a variety of market failures. In particular, New Keynesians assume that there is imperfect competition  in price and wage setting to help explain why prices and wages can become "sticky", _____ _________ _________ ______ _______ ________ ________ ________ ________ ____.
____ _________ ______ _____ _____ _____ _____ __________ __________ ___.
__________ ________ _________ ___ _____ ____ ______ ____ _____ ____ __________ _______.
___ ______ _________ _____ _____ __________ ________ ____ ____ ____ ________.
__________ _____ _______ ____ ____ ____ ____ ___ ____ _____.
_____ ___ _____ ____ __________ ___ ____ ____ ________ ________ ___ _____.
__________ _____ _________ _____ _________ _______ _______ ______ _____ _______ _____.
_____ _________ ____ _________ _________ ______ ___ ___ ________ _____.
____ _______ _____ ______ _______.
________ _________ _______ ___ ________ __________.
____ ____ ________ _______ __________ ________ ______ ________ ________ _______ _______.
_________ _____ _____ ______ _______ ________ __________.
__________ ________ ________ ______ _______ _________ _____ ____ _________.
_______ _____ ___ _______ ______ _______ ___ ________ __________ ________ _________.
__________ ____ ____ _________ _____ ___ ____ _____ ____ ________.
______ _____ ______ _______ __________ _______ _________ ______ __________ ______.
_______ ________ ______ _____ ________.
_______ _______ _____ __________ _________ ______.
____ _____ _____ __________ ___ __________ _________ __________.
___ _______ _______ _____ ______ ________ ______ ____ ______ __________ __________.
______ ___ _______ _________ ____ ____ ______.
___ _____ ______ __________ _________ _________.
________ ______ _______ __________ ___ _______ _________ __________ ____ ____ _________ ______.
__________ ___ ______ __________ ____ _______ _________ ______ _________ ______ ________ ____.
_____ ___ ___ _______ _____ ____.
_____ ___ _______ ______ _________ ____ _________ _________ ________.
______ _____ _________ ___ _____.
___ ______ __________ _________ ____.
_____ _________ _____ ________ __________.
_______ _________ _____ ____ _________ _________ ______.
_______ _____ ______ _____ __________ _____ ________ _________ _______ ___.
_________ _______ _____ _____ ___ ____ _________ ______ ________ _____ _________ ___.
________ ________ __________ _________ _______ ________ _________ ________.
__________ __________ _______ __________ ____ ________ ________ _____ _____.
___ ______ _____ __________ _________ _______ __________ ____ _______ __________.
____ ___ ______ ____ ___ ______.
_____ ____ ________ ____ ______ ___ __________ ______.
___ __________ ______ ____ ___ ___ ____ ________ ______ _________ ________ ____.
_____ ____ _________ _________ ___ ___ __________ _______.
________ _________ __________ ____ ____ _________ _____ ___ ______.
___ ____ ___ ____ _______ _____ _______ __________ ___ _____ _________.
______ ____ ___ _______ _____ ____ _____ __________.
___ ________ ______.
Get Full Answer on WhatsApp