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The Economy Is in Long-Run Equilibrium When There Is a Correctly

Question 91

Multiple Choice

The economy is in long-run equilibrium when there is a correctly anticipated increase in aggregate demand.In new Keynesian theory,the price level will rise __________ in the short run than it is predicted to rise in new classical theory.


A) by more
B) by less
C) by the same amount
D) faster
E) slower

Correct Answer:

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