In the New Classical Model

question 24

Multiple Choice

In the new classical model,

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

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Definitions:

Human Relations School

An approach in organizational management that emphasizes social relations at work and the importance of worker satisfaction.

Decision-making Innovations

New methods or processes improving the way decisions are made, often leading to more efficient or effective outcomes.

Industrialized Countries

Nations that have highly developed industries and infrastructure, offering a high standard of living and technological advancement.

Early 1970s

A period marked by significant cultural, political, and technological changes worldwide, roughly spanning from 1970 to 1974.