Multiple Choice
In the new classical model, if the money supply falls less than expected, then the shift to the _____ by AD will be _____ than the shift to the _____ by AS in the short run.
A) left, greater, right
B) left, less, right
C) right, greater, left
D) right, less, left
Correct Answer:
Verified
Correct Answer:
Verified
Q53: An open market sale of bonds could
Q54: To fight inflation, central banks must hold
Q55: Unanticipated policy changes do NOT affect equilibrium
Q56: If prices (and wages) are flexible and
Q57: Anticipated policy changes have no effect on
Q59: Assuming flexible prices, if the currency depreciates
Q60: During the Revolutionary War in the United
Q61: The credibility of an anti-inflation announcement depends
Q62: Longer term contracts between firms and suppliers
Q63: If taxes rise more than expected, then