Give two reasons wage rates may not fall. According to New Keynesian economists, why might business firms pay wage rates above market-clearing levels? Given the Keynesian consumption function, how...

Give two reasons wage rates may not fall.

According to New Keynesian economists, why might

business firms pay wage rates above market-clearing

levels?

Given the Keynesian consumption function, how

would a cut in income tax rates affect consumption?

Explain your answer.