Traditional keynesian theory and the new keynesian theory

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Both the traditional Keynesian theory and the new Keynesian theory indicate that the short-run aggregate supply curve is horizontal. Tasks: Answer the following questions: ? Is there any difference between the two approaches of the Keynesian theory and the new Keynesian theory in terms of short-run implications? ? What are the long-run implications on price level and GDP? (Please do not post the same blog that others have answered on this question. I would try like to understand it and if you do I will not rate it)

Reference no: EM13732388

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