-In the New Classical Model in the Figure Above, an Anticipated

question 27

Multiple Choice

-In the new classical model in the figure above, an anticipated contractionary monetary policy ________.

• A) shifts the economy from point 1 to point 2 to point 3
• B) shifts the economy from point 1 to point 4 to point 3
• C) shifts the economy from point 1 to point 3
• D) shifts the economy from point 3 to point 1

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