Multiple Choice
Like the new classical model,the new Keynesian model
A) concludes that anticipated policies do not affect aggregate output and unemployment.
B) distinguishes between the effects of anticipated versus unanticipated policy,with anticipated policy having a greater effect.
C) distinguishes between the effects of anticipated versus unanticipated policy,with unanticipated policy having a greater effect.
D) assumes that wages and prices are perfectly flexible with respect to changes in the expected price level.
Correct Answer:

Verified
Correct Answer:
Verified
Q14: According to the new classical model,<br>A)unanticipated policy
Q15: By _ its deficit,the government's credibility of
Q16: An anticipated increase in the money supply
Q17: In the new classical model,an anticipated policy
Q18: In the view of the new classical
Q20: An important feature of the new classical
Q21: _ policies do not change aggregate real
Q22: The model that assumes that expectations are
Q23: The short-run response to an anticipated expansionary
Q24: In the new classical model,<br>A)wages and prices