Kristin the economist argues that an anticipated monetary expansion will cause aggregate output to increase but believes that aggregate output would increase by an even greater amount if the monetary expansion came as a surprise to everyone.Kristin is probably a

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Kristin's belief that an anticipated monetary expansion will cause aggregate output to increase is consistent with the new Keynesian view that monetary policy can affect real output in the short run. Her belief that aggregate output would increase by an even greater amount if the monetary expansion came as a surprise to everyone is consistent with the new Keynesian view that unanticipated monetary expansions can lead to larger increases in output than anticipated expansions.

Kristin the Economist Argues That an Anticipated Monetary Expansion Will