What happens in the long run in the new keynesian model


Problem

1. How does the New Keynesian model fit the key business cycle facts?

2. What happens in the long run in the New Keynesian model?

3. How do Keynesians justify intervention in the economy through monetary and fiscal policy?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: What happens in the long run in the new keynesian model
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