In Terms of the AD-AS Model, the New Classical Approach

question 7

Multiple Choice

In terms of the AD-AS model, the new classical approach indicates that an unexpected decrease in the money supply will affect output because it will cause

• A)the SRAS curve to shift down, whereas the AD curve will be unaffected.
• B)the SRAS curve to shift up, whereas the AD curve will be unaffected.
• C)the AD curve to shift to the left, whereas the SRAS curve will be unaffected.
• D)the AD curve to shift to the right, whereas the SRAS curve will be unaffected.

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