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© 2014 Pearson Canada Inc."
- ____ policies do not change aggregate real output or the unemployment in the
____ model.
A) Anticipated; new Keynesian
B) Unanticipated; new Keynesian
C) Anticipated; new classical
D) Unanticipated; new classical
Answer: C
Diff: 2 Type: MC Page Ref: 695
Skill: Recall
Objective List: 25.1 Discern between activist and non-activists views on monetary policy
Figure 27- 3
In the new classical model in Figure 27-3, an anticipated expansionary monetary policy
____.
A) shifts the economy from point 1 to point 2 to point 3
B) shifts the economy from point 1 to point 4 to point 3
C) shifts the economy from point 1 to point 3
D) shifts the economy from point 3 to point 1
Answer: C
Diff: 2 Type: MC Page Ref: 695
Skill: Applied
Objective List: 25.1 Discern between activist and non-activists views on monetary policy
In the new classical model in Figure 27-3, an unanticipated expansionary monetary policy
____.
A) shifts the economy from point 1 to point 2 to point 3
B) shifts the economy from point 1 to point 4 to point 3
C) shifts the economy from point 1 to point 3
D) shifts the economy from point 3 to point 1
Answer: A
Diff: 2 Type: MC Page Ref: 695
Skill: Applied
Objective List: 25.1 Discern between activist and non-activists views on monetary policy