New classical economists contend that an unexpected increase in the money supply will:
A)increase the unemployment rate in the short run.
B)reduce the unemployment rate in the short run.
C)cause no short-run change in the unemployment rate.
D)reduce the unemployment rate in the long run.
E)increase the unemployment rate in the long run.

Question

Quizplus · Accepted Answer

The Answer of New classical economists contend that an unexpected increase in the money supply will:
A)increase the unemployment rate in the short run.
B)reduce the unemployment rate in the short run.
C)cause no short-run change in the unemployment rate.
D)reduce the unemployment rate in the long run.
E)increase the unemployment rate in the long run.

New Classical Economists Contend That an Unexpected Increase in the Money