From New Classicals to RBC The NCE challenged Keynesian theory,and stimulated the development of NK and RBC Theory NK theory accepts the REH,but emphasizes the importance of imperfect competition,costly or impeded price adjustments,and externalities.It argues that nominal shocks are the predominant cause of business cycles. 电子科大经管学院马捷 6From New Classicals to RBC  The NCE challenged Keynesian theory, and stimulated the development of NK and RBC Theory  NK theory accepts the REH, but emphasizes the importance of imperfect competition, costly or impeded price adjustments, and externalities. It argues that nominal shocks are the predominant cause of business cycles. 电子科大经管学院 马捷 6