Which of the Following Statements Is Correct According to Both

question 9

Multiple Choice

Which of the following statements is correct according to both new classical and new Keynesian economists?

• A)An unexpected increase in the money supply will increase only prices in the short run, whereas an unexpected increase in government spending will increase both prices and output.
• B)An unexpected increase in government spending will increase both prices and output in the short run.
• C)An unexpected increase in government spending will increase only output in the short run.
• D)Unexpected increases in the money supply or in government spending will increase only prices in the short run.

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Definitions:

Well-Being

A comprehensive term for the state of being comfortable, healthy, or happy, often used in the context of mental, physical, and social health.

Type Of Treatment

Refers to the different categories of interventions or conditions applied to subjects in experimental research.

Cohort

A group of individuals sharing a common characteristic, typically defined by the year or period of birth, who are studied over a period of time.

Independent Variable

The variable in an experiment or study that is manipulated by the researcher to observe its effect on the dependent variable.