Suppose That in a New Classical Model the Public Anticipates

question 143

Multiple Choice

Suppose that in a new classical model the public anticipates that policymakers will increase aggregate demand.However,aggregate demand increases by less than what the public anticipated.The result in the short run is that Real GDP ____________ and the price level ____________.

• A) decreases; decreases
• B) increases; increases
• C) increases; decreases
• D) decreases; increases

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Definitions:

Disadvantaged Groups

Communities or population segments that face social, economic, or political barriers limiting their access to opportunities and resources.

Medical Services

Professional services provided by healthcare practitioners or organizations aimed at maintaining, improving, or restoring health.

Privatization

The transfer of ownership, property, or business from the government to private individuals or organizations.

Wait Times

The duration of time a person is required to wait before receiving a service, medical attention, or response, often used in the context of healthcare, customer service, or public services.