New-Keynesian macroeconomics 

New Keynesian Macroeconomics:

New Keynesian Macroeconomics is a modern approach to macroeconomic theory and policy that integrates elements of Keynesian economics with more microeconomic foundations. It emerged in the late 20th century as a response to criticisms of traditional Keynesian economics and aims to provide a more solid theoretical framework for understanding how the economy operates in the short run.

Key Ideas:

1. Microfoundations: New Keynesian economics places a strong emphasis on microeconomic foundations. It incorporates ________ ____ ________ ___ ___ ____ ________ _________ __________ ___ ________ _______.
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