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:

Obedience

Obedience is a form of social influence where an individual acts in response to a direct order from another individual, who is usually an authority figure.

Conformity

The act of matching attitudes, beliefs, and behaviors to what is considered the norm or standard in a group.

Social Pressure

The influence exerted by society or social groups on individuals to conform to certain behaviors or attitudes.

Collectivism

A cultural value that emphasizes the importance of the group over individual achievements.