In the new Keynesian model, the ultimate effect on output of an anticipated aggregate demand shock is ________
A) less than if that event was unanticipated
B) greater than if that event was unanticipated
C) the same as would develop if that event had never occurred
D) dependent on whether or not that event is temporary or permanent
C
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The attainable production points on a production possibilities curve are
A) the horizontal and vertical intercepts. B) the points outside the area enclosed by the production possibilities frontier. C) the points along the production possibilities frontier. D) the points along and inside the production possibility frontier.
A form of implicit collusion where one firm in an oligopoly announces a price change which is matched by other firms in the same industry is
A) "tit-for-tat" pricing. B) "follow the leader" pricing. C) retaliation pricing. D) price leadership.
Financial intermediaries are
A) institutions that regulate financial instruments. B) organized exchanges where currencies are traded. C) organized exchanges where securities and financial instruments are bought and sold D) institutions that make loans to borrowers and obtain funds from savers.
Under the Bretton Woods system, a country with a balance of payments deficit
a. could get loans from the U.S. government. b. could devalue if deflationary policies failed to eliminate the deficit. c. was not allowed to devalue under any circumstance. d. was required to devalue its currency immediately.