Exhibit 16-1 -Refer to Exhibit 16-1.According to New Classical Macroeconomists,if Decreases in Classical

question 62

Multiple Choice

Exhibit 16-1

-Refer to Exhibit 16-1.According to new classical macroeconomists,if decreases in aggregate demand are unanticipated,then the economy will move from point C to

• A) point B.
• B) point A.
• C) some point on SRPC₂, below C.
• D) some point on SRPC₁, below A.

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