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:

Emotional Disorders

A category of mental health issues characterized by emotional disturbance, including disorders such as depression and anxiety.

Improvement

The process of becoming better or achieving a higher standard in quality, efficiency, or performance.

Psychotherapy

A therapeutic treatment involving psychological techniques, designed to assist individuals in overcoming difficulties or achieving personal growth.

Depressed Patients

Individuals diagnosed with depression, a mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.