In the New Classical Model, an Anticipated Policy of a Continually

question 30

Multiple Choice

In the new classical model, an anticipated policy of a continually increasing money supply causes ________.

• A) the aggregate demand curve to shift right along a stationary aggregate supply curve, leading to continually increasing aggregate output and prices
• B) the aggregate supply curve to shift left along a stationary aggregate demand curve, leading to continually contracting aggregate output and prices
• C) the aggregate demand curve to shift continually to the right while simultaneously the aggregate supply curve shifts continually inward, leading to higher and higher price levels
• D) the aggregate demand curve to shift continually to the left while simultaneously the aggregate supply curve shifts continually outward, leading to higher and higher price levels

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Definitions:

Total Lung Capacity (TLC)

The maximum amount of air the lungs can contain, typically measured after a maximal inhalation effort.

Spirometer

An instrument used to measure the volume of air inhaled and exhaled by the lungs, assessing pulmonary function.

Functional Residual Capacity (FRC)

The amount of air left in the lungs following a standard breath out.

Residual Volume (RV)

The volume of air remaining in the lungs after a maximal exhalation, important for keeping the lungs inflated.