-In the new classical model in the figure above, the initial impact of an anticipated increase in aggregate demand that is less than expected ________. A) increases output from Y_n to Y₂, and the inflation rate from P₁ to P₂ B) decreases output from Y_n to Y₅, and increases the inflation rate from P₁ to P₅ C) decreases output from Y_n to Y₄, and increases the inflation rate from P₁ to P₄ D) does not change output and increases the inflation rate from P₁ to P₃

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The Answer of -In the new classical model in the figure above, the initial impact of an anticipated increase in aggregate demand that is less than expected ________. A) increases output from Y_n to Y₂, and the inflation rate from P₁ to P₂ B) decreases output from Y_n to Y₅, and increases the inflation rate from P₁ to P₅ C) decreases output from Y_n to Y₄, and increases the inflation rate from P₁ to P₄ D) does not change output and increases the inflation rate from P₁ to P₃

-In the New Classical Model in the Figure Above, the Initial