Problem
Both the traditional Keynesian theory discussed and the new Keynesian theory considered in this chapter indicate that the short-run aggregate supply curve is horizontal.
a. In terms of their short-run implications for the price level and real GDP, is there any difference between the two approaches?
b. In terms of their long-run implications for the price level and real GDP, is there any difference between the two approaches?
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.