Multiple Choice
In the extended classical model,an unexpected decrease in aggregate demand would cause unanticipated inflation to be ________ and cyclical unemployment to be ________.
A) positive; negative
B) positive; positive
C) negative; negative
D) negative; positive
Correct Answer:

Verified
Correct Answer:
Verified
Q28: Keynesian macroeconomists argue that the short-run Phillips
Q29: If the expected rate of inflation rose
Q30: Can macroeconomic policy be used systematically to
Q31: Unanticipated deflation can create unemployment if<br>A)nominal wages
Q32: Examining data on cyclical unemployment plotted against
Q34: If the expected inflation rate is unchanged,a
Q35: Consider the following misperceptions model of
Q36: The costs of disinflation would be low
Q37: Countries in which wages adjust rapidly to
Q38: One reason for the fall in the