Figure 27-3

-In the new classical model in Figure 27-3, an unanticipated expansionary monetary policy ________.
A)shifts the economy from point 1 to point 2 to point 3
B)shifts the economy from point 1 to point 4 to point 3
C)shifts the economy from point 1 to point 3
D)shifts the economy from point 3 to point 1

Question

Figure 27-3
 
-In the new classical model in Figure 27-3, an unanticipated expansionary monetary policy ________.
A)shifts the economy from point 1 to point 2 to point 3 
B)shifts the economy from point 1 to point 4 to point 3 
C)shifts the economy from point 1 to point 3 
D)shifts the economy from point 3 to point 1

Quizplus · Accepted Answer

The Answer of Figure 27-3
 
-In the new classical model in Figure 27-3, an unanticipated expansionary monetary policy ________.
A)shifts the economy from point 1 to point 2 to point 3 
B)shifts the economy from point 1 to point 4 to point 3 
C)shifts the economy from point 1 to point 3 
D)shifts the economy from point 3 to point 1

Figure 27-3 -In the New Classical Model in Figure 27-3, an Unanticipated