In the New Classical Model,________

question 45

Multiple Choice

In the new classical model,________.

• A) all wages and prices are perfectly flexible with respect to expected changes in the price level
• B) a fall in the expected price level results in an immediate and equal rise in wages and prices
• C) only unanticipated policy can affect aggregate output and unemployment
• D) Both A and C of the above

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Definitions:

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Debt that has been formally released or forgiven, relieving the debtor of any further responsibility to repay it.

Trustee

An individual or company responsible for managing and overseeing assets or property on behalf of another party.

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A provision of the bankruptcy code that allows individuals and businesses to discharge or eliminate most of their debts through the liquidation of assets.

Debtor's Property

Assets belonging to a debtor that may be used to pay off creditors.