Arnold Kling quiz of the day

Which of the following impediments to economic adjustment do you believe to be the most important?

a) the cost of establishing a new enterprise
b) the cost of integrating new workers and equipment into an existing enterprise
c) the cost of adapting physical and human capital to new circumstances
d) the cost of whiting out an old price list (menu) and updating it with new prices

If you answered (d), then congratulations–you have shown your New Keynesian bona fides.

Arnold, by the way, does not answer (d).  The link is here.  Elsewhere at EconLog, here is a very good Bryan Caplan post on the evolution on punditry and the political spectrum.


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