-In the New Classical Model in the Figure Above, the Long-Run

question 26

Multiple Choice

-In the new classical model in the figure above, the long-run effect of an unanticipated monetary expansion ________.

• A) increases output from Y_n to Y₂, and the inflation rate from P₁ to P₂
• B) decreases output from Y_n to Y₄, and the inflation rate from P₃ to P₄
• C) does not change output and increases the inflation rate from P₁ to P₃
• D) does not change output and decreases the inflation rate from P₃ to P₁

---

Definitions:

Stay-at-Home Dads

Fathers who choose to stay at home to care for their children and manage household duties instead of working outside the home.

Job Security

The assurance that an individual will retain their job without the risk of becoming unemployed, providing stability and confidence.

Economic Strong

Refers to situations or entities that possess robust financial health, stability, or growth.

Two-Person Single Career

A situation where one partner's career is prioritized, and the other partner contributes support to ensure the success of that career, often sacrificing their own career advancement.