Economics Q139
0. Which of the following is the main difference between New Classical and NeoKeynesian models?
- A
New Classical models are monetarist, whereas Neo-Keynesian models are not.
- B
New Classical models use utility-maximizing agents, whereas NeoKeynesian does not.
- C
New Classical models assume that prices adjust quickly to changes in supply and demand, whereas Neo-Keynesians assume that prices adjust slowly.
- Option : C
- Explanation : A key feature of Keynesian macroeconomics is the stickiness of prices. In contrast, Classical views assume flexible price adjustments that ensure market clearing.
