Which of the following statements is correct concerning the views of new Keynesians and new classicals concerning aggregate supply?
A) New classical economists believe the short-run and long-run aggregate supply curves are both vertical.
B) New Keynesian economists believe the short-run and long-run aggregate supply curves slope upward.
C) Both new Keynesian and new classical economists believe the aggregate supply curve slopes upward in the long run.
D) Both new Keynesian and new classical economists believe the aggregate supply curve slopes upward in the short run.
Correct Answer:
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Q24: Expansionary fiscal policy will produce inflation only
Q25: According to new classical economists, sustained expected
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Q27: Which of the following statements is correct?
A)Both
Q28: Government budget deficits can be inflationary in
Q30: Why has the Fed made low inflation
Q31: Long-term inflation is principally
A)the result of chronic
Q32: A one-time cut in taxes
A)can result in
Q33: Inflation occurs whenever
A)there is a one-time increase
Q34: Which of the following statements is correct
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