In the New Classical Model, ________

question 84

Multiple Choice

In the new classical model, ________.

• A) wages and prices are sticky with respect to expected changes in the price level
• B) unanticipated policy has no effect on aggregate output and unemployment
• C) an anticipated increase in the money supply will increase aggregate output temporarily
• D) only unanticipated policy can affect aggregate output and unemployment

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Definitions:

Power Elite

A small group of people controlling a disproportionate amount of wealth, political power, and society's resources.

Similar Backgrounds

Refers to individuals or groups that share comparable upbringing, culture, education, or experiences.

Political Sphere

The domain of society where political activities, including governance, policymaking, and political discourse, occur.

Pluralist Model

A theory suggesting that power in a society is distributed among many groups, leading to a balance that benefits the general public.