Figure 27-3 -In the New Classical Model in Figure 27-3, the Long-Run

question 49

Multiple Choice

Figure 27-3

-In the new classical model in Figure 27-3, the long-run effect of an unanticipated monetary expansion ________.

• A)increases output from Yn to Y₂, and the inflation rate from P₁ to P₂
• B)decreases output from Yn to Y₄, and the inflation rate from P₃ to P₄
• C)does not change output and increases the inflation rate from P₁ to P₃
• D)does not change output and decreases the inflation rate from P₃ to P₁

---

Definitions:

Intended Readers

The specific audience a writer aims to reach with their message or content.

Clear Sentences

Sentences constructed in a straightforward and uncomplicated manner, ensuring easy understanding.

Paragraphs

Sections in writing that are made up of one or more sentences focused on a single idea or topic.

Coherence

In writing or speech, coherence refers to the logical connection and consistency that makes the content understandable and meaningful as a whole.