In the new Keynesian model, the ultimate effect on inflation 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) independent of whether or not that event is anticipated or unanticipated
D
You might also like to view...
Who has a greater opportunity cost of enjoying leisure—a janitor or a surgeon?
a. whoever has the greater income effect b. whoever has the greater substitution effect c. the janitor because his wage is lower d. the surgeon because his wage is higher
The natural rate of unemployment is
A. the unemployment rate that exists in long-run equilibrium, after adjustments to all changes have occurred. B. zero. C. the unemployment rate when there is no structural unemployment. D. the unemployment rate becomes negative.
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, the likely change in capital flow in sector Y will eventually
A. generate excess profits. B. eliminate all profits. C. result in excess losses. D. eliminate all losses.
Asymmetric information includes the concepts of
A) moral hazard transfer costs. B) adverse selection and public goods. C) adverse selection and moral hazard. D) negative and positive externalities.