According to New Classical Theory,if the Public Correctly Anticipates a Government

question 33

Multiple Choice

According to new classical theory,if the public correctly anticipates a government policy to increase aggregate demand,then the

• A) short-run Phillips curve will be upward sloping,but the long-run Phillips curve will be downward-sloping.
• B) long-run Phillips curve will be upward sloping,but the short-run Phillips curve will be downward-sloping.
• C) short-run Phillips curve will be upward sloping,but the long-run Phillips curve will be vertical.
• D) long run Phillips curve will be upward sloping,but the short-run Phillips curve will be vertical.
• E) short- and long-run Phillips curves will be vertical.

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Definitions:

Sales

The activities involved in selling goods or services in return for money or other compensation.

Trend Percentages

An analytical tool used to examine changes in financial statements items over various periods, expressing each item as a percentage of its value in the base year.

Base Period

A specific time period used as a standard of comparison for financial or economic data.

Analysis Period

The specific span of time for which financial or operational performance is examined and analyzed.