In a New Keynesian Model a Temporary Increase in Output

question 9

Multiple Choice

In a new Keynesian model a temporary increase in output could be cause by:

• A)a positive monetary surprise.
• B)households becoming exogenously more thrifty.
• C)a positive shock to government purchases.
• D)all of the above.

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Definitions:

ATP

Adenosine Triphosphate, an organic compound that provides energy to drive many processes in living cells, including muscle contraction, nerve impulse propagation, and chemical synthesis.

Energy Metabolism

The process by which living organisms produce energy, through the conversion of food into usable chemical energy.

Closed System

An entity that does not exchange energy with its surroundings. Compare with open system.

Noncompetitive Inhibition

The binding of a substance (the noncompetitive inhibitor) to a site other than the active site of an enzyme, thereby lowering the rate at which the enzyme catalyzes a reaction. Compare with competitive inhibition.