How does the New Classical Model's view on wage and price flexibility differ from the Keynesian Model?

• A. Both models assume wages and prices are sticky.
• B. The New Classical Model assumes wages and prices are flexible, while the Keynesian Model assumes they are sticky.
• C. Both models assume wages and prices are flexible.
• D. The New Classical Model assumes wages and prices are sticky, while the Keynesian Model assumes they are flexible.

Answer: (B)