According to the new classical model,

a. anticipated declines in aggregate demand would move output and employment below the full-employment levels.
b. announced declines in aggregate demand do not change output and employment above the full-employment levels.
c. anticipated declines in aggregate supply would only put employment below the full-employment level.
d. unanticipated declines in aggregate demand would cause output and employment to fall below the full-employment levels.
e. both c and d.


E

Economics

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Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks are subject to a uniform 10 percent reserve requirement and checkable deposits are the only form of money. A commercial bank receiving a new checkable deposit of $100 would be able to extend new loans in the amount of:

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Economics