1. Furthermore, some New Keynesian models confirm the non-neutrality of money under several conditions. 2. Tobin says, " and they still must use modified Keynesian models to do it ." 3. In the Keynesian model , higher prices will prompt increases in the supply of goods and services. 4. However, his 1950s reinterpretation of the Keynesian consumption function challenged the standard Keynesian model of that time. 5. The Calvo model has become the most common way to model nominal rigidity in new Keynesian models . 6. He said, " There has been justified criticism of the Keynesian model , that it was too Depression-oriented ." 7. The Keynesian model therefore failed to explain the consumption phenomenon and thus emerged the theory of intertemporal choice. 8. The Keynesian model accepted by Labour emphasised that planning could be handled indirectly through national spending and tax policies. 9. RBC models were dynamic but assumed perfect competition; new Keynesian models were primarily static but based on imperfect competition. 10. Older Keynesian models measured output gaps as the difference between measured output and an ever growing trend of output capacity.
