Which of the Following Statements Is Correct Concerning the Views

question 68

Multiple Choice

Which of the following statements is correct concerning the views of new Keynesians and new classicals concerning the short-run effects of an unexpected increase in aggregate demand?

• A)New classical economists believe that unexpected increases in aggregate demand affect only prices.
• B)New Keynesian economists believe that unexpected increases in aggregate demand affect only output.
• C)Both new Keynesian and new classical economists believe that unexpected increases in aggregate demand affect only output.
• D)Both new Keynesian and new classical economists believe that unexpected increases in aggregate demand affect both output and prices.

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Definitions:

Free Will

The concept that individuals have the capacity to make choices and take actions independent of external constraints or determinism.

Pessimism

The tendency to see the worst aspect of things or believe that the worst will happen; a lack of hope or optimism.

Human Nature

A term referring to the characteristics, feelings, and behavioral traits of humankind that are naturally ingrained.

Congruence Corollary

A concept in psychology stating that personal growth is facilitated when there is alignment between an individual's self-image and experiences.