In the New Keynesian sticky wage model,an increase in the money supply
A) shifts the output supply curve to the right.
B) shifts the output supply curve to the left.
C) shifts the output demand curve to the right.
D) shifts the output demand curve to the left.
E) immediately closes the output gap.
Correct Answer:
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A)
Q30: The New Keynesian model predicts that
A) money
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