In a New Keynesian Model an Increase in Aggregate Demand

question 35

Multiple Choice

In a new Keynesian model an increase in aggregate demand causes:

• A)an increase in real production greater than the increase in aggregate demand.
• B)an increase in real production equal to increase in aggregate demand.
• C)an increase in real production less than the increase in aggregate demand.
• D)a decrease in real production.

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