Economics Q139

139Which 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.

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