According to the new classical theory, ________ policy changes have NO effect on real GDP and according to the new Keynesian theory, ________ policy changes have an effect on real GDP.
A) only expected; expected and unexpected
B) only unexpected; expected and unexpected
C) only expected; only unexpected
D) only unexpected; only expected
Correct Answer:
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Q37: Q38: Q39: In the monetarist business cycle theory, decreasing Q40: The _ cycle theory states that only Q41: New Keynesian economists believe that _ is Q43: Both new Keynesian and new classical cycle Q44: An unexpected decrease in aggregate demand will Q45: A larger than expected increase in aggregate Q46: The _ theory of the business cycle Q47: According to the new classical model, changes
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