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Both traditional and new Keynesian theory indicate that the short run aggregate supply is horizontal.

a) in terms of their short run implications for the price level & real GDP, is there any difference between the two approaches?

  • Same short run implications
  • Different short run implications

b) In the terms of their lon run nimplications for the price level and real GDP, is there any differences between the two appraoches?

  • Same short run implications
  • Different short run implications

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M937515

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