Figure 27-3 -In the New Classical Model in Figure 27-3, an Anticipated

question 68

Multiple Choice

Figure 27-3

-In the new classical model in Figure 27-3, an anticipated 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

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