The new Keynesian model relies on the concept of coordination failure to explain why demand and supply

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The new Keynesian model relies on the concept of coordination failure to explain why demand and supply shocks lead to undesirable output and employment fluctuations. What role does this suggest for government stabilization policy? Is this a point with which the new classical model agrees? Why?
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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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