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Unformatted text preview: the classical model? 4. How would a supply shock, such as an exogenous increase in oil prices, affect the aggregate levels of prices and output in the new classical model? 5. On what grounds do the Keynesians criticise the new classical theory? 6. What are the two key assumptions that new classical economists argue must be present in any useful macroeconomic model?...
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This note was uploaded on 03/10/2012 for the course ECON 1110 taught by Professor Tedloch-temzelides during the Spring '08 term at Pittsburgh.
- Spring '08