Aggregate supply in the new classical aggregate supply
A) is vertical in the short-run.
B) is horizontal in the short-run.
C) is upward sloping in the short-run.
D) None of the above
Correct Answer:
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Q12: An unanticipated decline in investment demand within
Q13: If policy irrelevance holds in the new
Q14: Suppose that the Federal Reserve makes an
Q15: Explain the new classical theory explanation of
Q16: In the view of the new classical
Q18: In the new classical view,an anticipated decrease
Q19: According to new classical model,real wages
A)rise when
Q20: Discuss the new classical critique of Keynesian
Q21: In the new classical model,stabilization policies
A)cannot affect
Q22: Monetarists and Keynesians agree that expectations are
A)backwards-looking.
B)rational.
C)unstable.
D)forwards-looking.
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