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According to New Classical Theory,if the Public Correctly Anticipates a Government

Question 53

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According to new classical theory,if the public correctly anticipates a government policy to increase aggregate demand,then the


A) short-run Phillips curve will be upward sloping,but the long-run Phillips curve will be downward-sloping.
B) long-run Phillips curve will be upward sloping,but the short-run Phillips curve will be downward-sloping.
C) short-run Phillips curve will be upward sloping,but the long-run Phillips curve will be vertical.
D) long run Phillips curve will be upward sloping,but the short-run Phillips curve will be vertical.
E) short- and long-run Phillips curves will be vertical.

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