Author Question: In the new Keynesian model, the ultimate effect on output of an anticipated aggregate demand shock ... (Read 73 times)

scienceeasy · **on:** Jun 30, 2018

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

Question 2

The AD Curve ________.

A) demonstrates how central banks respond to changes in interest rates by changing the inflation rate
B) shows how changes in equilibrium output affect the inflation rate
C) explains long run fluctuations in output and inflation
D) all of the above
E) none of the above