Question from Past Macroeconomics Qualifying Exam (Spring, 2003 - Question one) at George Mason University[]

A good deal of controversy in macroeconomic theorizing revolves around the relative merits of quantity adjustment and price adjustment as providing the starting point for the analytical effort. Old Keynesians and New Keynesians emphasize quantity adjustment. Old Classicals and New Classicals emphasize price adjustment. Use a relevant model for each of these Schools to identify the macroeconomic significance of these alternative starting points. Provide your own assessment of the analytical cogency and empirical applicability of the four models that you outline.


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