According to the new classical theory,a monetary surprise will
A) shift the labor supply curve to the right in the short run.
B) shift the labor supply curve to the left in the short run.
C) not shift the labor supply curve in the short run.
D) shift the aggregate supply curve to the left in the short run.
E) shift the aggregate supply curve to the right in the short run.
Correct Answer:
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Q22: Monetarists and Keynesians agree that expectations are
A)backwards-looking.
B)rational.
C)unstable.
D)forwards-looking.
Q23: When expectations are rational,
A)a foreseen expansionary policy
Q24: Keynesians disagree with the new classical model
Q25: In the rational expectations model
A)markets are perfectly
Q26: If government policy makers become more secretive,then
Q28: Like the monetarists,new classical economists favor
A)money growth
Q29: "All available information" in the definition of
Q30: According to new classical economists,
A)deficits should have
Q31: According to Thomas Sargent and other new
Q32: In a move to increase its openness,the
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