According to the New Classical Theory,__________ Policy Changes Have No

question 122

Multiple Choice

According to the new classical theory,__________ policy changes have no effect on real GDP and according to the new Keynesian theory,__________ policy changes have an effect on real GDP.

• A) expected; expected
• B) fiscal; monetary
• C) fiscal; fiscal
• D) unexpected; expected

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Definitions:

Irrelevant Information

Information that does not pertain to the current context or situation, lacking importance or relevance.

Sensory

Sensory relates to the senses or sensation, involving the reception and processing of visual, auditory, olfactory, tactile, and taste information.

Trace

To follow, study, or monitor the course or path of something; also pertains to a very small amount or indication of something.

Working

Engaging in physical or mental activity in order to achieve a purpose or result, typically in a job or profession.