In the New Classical Model, an Unanticipated Increase in the Money

question 48

Multiple Choice

In the new classical model, an unanticipated increase in the money supply causes ________.

• A) the aggregate demand curve to shift to the right along a stationary aggregate supply curve
• B) both the aggregate demand and supply curves to shift simultaneously to the right
• C) the aggregate demand curve to shift to the right as the aggregate supply curve simultaneously shifts to the left
• D) both the aggregate demand and supply curves to shift simultaneously to the left

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