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policy is neutral

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Many people who use the term New Classical a natural counterpart to the term New Keynesian seem to have in mind some version of a Real Business Cycle model where prices are, in fact, assumed to be fully flexible,coach purses, agents are rational,coach outlet, all markets clear,coach outlet online, policy is neutral, etc. In these models, actual output is always equal to potential (so there no need for policy to do anything but maximize the growth of potential output, hence the supplyside orientation of advocates of this approach). supply shocks,michael kors outlet, and that is the source of business cycles in thsi class of models,coach factory outlet.Related Articles：

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