According to the New Classical School, an Expected Increase in Government

Multiple Choice

According to the new classical school, an expected increase in government spending is associated with:

A) a downward movement along the long-run Phillips curve.
B) an upward movement along the short-run Phillips curve.
C) a parallel outward shift of the long-run Phillips curve.
D) an upward movement along the long-run Phillips curve.
E) a downward shift of the short-run Phillips curve.