Both traditional and new Keynesian theory indicate that the short run aggregate supply is horizontal.
a) in terms of their short run implications for the price level & real GDP, is there any difference between the two approaches?
- Same short run implications
- Different short run implications
b) In the terms of their lon run nimplications for the price level and real GDP, is there any differences between the two appraoches?
- Same short run implications
- Different short run implications