Chapter 11.pdf - ECON 202 u2010 Macroeconomics Abel Andrew...

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ECON 202 ‐ Macroeconomics  1  Abel, Andrew B., Ben S. Bernanke, and D. Croushore. "Macroeconomics (6th edn)." (2008).Chapter 11 Keynesianism: The Macroeconomics of Wage and Price Rigidity Review Questions 1.What is price stickiness? Why do Keynesians believe that allowing for price stickiness in macroeconomic analysis is important?
2.What does the Keynesian model predict about monetary neutrality (both in the short run and in the long run)? Compare the Keynesian predictions about neutrality with those of the basic classical model.

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