According to the New Classical Theory, ________ Policy Changes Have

question 324

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) only expected; expected and unexpected
• B) only unexpected; expected and unexpected
• C) only expected; only unexpected
• D) only unexpected; only expected

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Definitions:

Alcoholic Drinks

Beverages containing ethanol, a type of alcohol produced by fermenting grains, fruits, or other sources of sugar.

Tolerance

The body's reduced response to a drug after prolonged use, requiring an increased dosage to achieve the original effect.

Illicit Substance

A substance whose production, sale, or use is prohibited by law.

Bioavailability

The degree and rate at which a drug or other substance is absorbed or becomes available at the intended biological site of action.