the economics of money, banking, and financial markets

782 "

© 2014 Pearson Canada Inc."

20. ____ 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

21. 
    

    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

    
    


22. 
    

    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