According to the New Keynesian Approach Output Fell During the Early

question 4

Multiple Choice

According to the new Keynesian approach output fell during the early 1990s because

• A)fiscal policy was sufficiently contractionary to offset an expansionary monetary policy.
• B)the rightward shift of the AD curve was greater than the leftward shift of SRAS curve.
• C)consumers and businesses came to expect higher inflation, thereby causing the SRAS curve to shift to the left.
• D)the Fed decided to initiate a contractionary monetary policy to fight inflation.

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Definitions:

Custodial Mother

A mother who has been granted primary legal and/or physical custody of her child(ren) by a court.

Child Support

Financial contributions required by law to be made by a non-custodial parent to support their child(ren)'s upbringing and welfare.

Remarriage

Entering into marriage again after one or more previous marriages have ended through divorce or widowhood.

Stepparent Roles

The functions and responsibilities adopted by a person who marries a partner with children from a previous relationship.