In the New Classical View

question 89

Multiple Choice

In the new classical view,

• A) a change in the money supply will affect real GDP only if people anticipate the policy change.
• B) monetary policy can never change real GDP.
• C) using monetary policy will change real GDP only if the policy takes people by surprise.
• D) fiscal policy has more chance of success than monetary policy.

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Definitions:

Therapeutic Response

The body's reaction to a treatment, indicating the treatment's effectiveness in addressing a health condition.

Empathic

Having the ability to understand and share the feelings of another.

Cultural Interpretation

The act of understanding or explaining the meanings, beliefs, practices, and artifacts of one culture in terms relevant to another.