According to a new Keynesian theorist, a correctly anticipated increase in aggregate demand will

A) cause the price level to increase by a greater amount in the short run than what a new classical rational expectations theorist would predict.
B) cause the price level to increase by a smaller amount in the short run than what a new classical rational expectations theorist would predict.
C) cause the price level to increase by the same amount in the short run that a new classical rational expectations theorist would predict.
D) leave the price level unchanged in the short run, but Real GDP will increase more than what a new classical theorist would predict.
E) leave the price level unchanged in the short run, but Real GDP will increase less than what a new classical theorist would predict.


B

Economics

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Answer the following statement true (T) or false (F)

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A credit card is

A) money. B) barter money. C) not money. D) fiat money. E) not money, but the card's credit line is money.

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If diminishing marginal returns have already set in for Golden Lark Woodworks, and the marginal product of the 6th carpenter is 8 chairs, then the marginal product of the 7th carpenter is

A) more than 8 chairs. B) zero. C) negative. D) less than 8 chairs.

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Alpha can produce either 18 tons of oranges or 9 tons of apples in a year, while Omega can produce either 16 tons of oranges or 4 tons of apples. The opportunity costs of producing 1 ton of oranges for Alpha and Omega, respectively, are: a. 0.25 tons of apples; 0.5 tons of apples. b. 9 tons of apples; 4 tons of apples

c. 2 tons of apples; 4 tons of apples. d. 0.5 tons of apples; 0.25 tons of apples.

Economics