Multiple Choice
In the new Keynesian model,an expansionary monetary policy will
A) not cause aggregate output to increase,even if the policy is unanticipated.
B) have a greater effect on aggregate output if the policy is unanticipated.
C) have a greater effect on aggregate output if the policy is anticipated.
D) have no effect on the price level.
Correct Answer:
Verified
Correct Answer:
Verified
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