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Abstract
This letter reconsiders the empirical tests of the new Keynesian and new classical models performed by Ball, Mankiw, and Romer (Brookings Papers on Economic Activity, 1, 1988) and Akerlof, Rose and Yellen (Brookings Papers on Economic Activity, 1, 1988). The original tests confirm basically to cross-section analysis. We propose time-series testing procedure of these issues. Our tests find supports for the new Keynesian hypothesis.