An Expected Change in the Money Supply Will Result in a Greater

question 91

Multiple Choice

An expected change in the money supply will result in a greater shift in the short-run aggregate supply curve in the new classical approach than in the new Keynesian approach because

• A)households and businesses have rational expectations in the new classical approach but not in the new Keynesian approach.
• B)households and businesses have rational expectations in the new Keynesian approach but not in the new classical approach.
• C)prices are perfectly flexible in the new Keynesian approach, whereas prices are sticky in the new classical approach.
• D)prices are perfectly flexible in the new classical approach, whereas prices are sticky in the new Keynesian approach.

---

Definitions:

Observing

The act of carefully watching and analyzing behaviors, events, or phenomena to gain information or understanding.

Out-of-School Suspension

A disciplinary measure where a student is temporarily removed from their regular educational setting for behavioral reasons.

Reinforcement

In operant conditioning, a consequence applied to increase the likelihood of a behavior occurring again.

Punishment

A consequence imposed on an individual for a perceived wrongdoing, intended to correct or deter undesirable behavior.