In the New Keynesian Model,the Immediate Effect on Inflation of an Anticipated

question 57

Multiple Choice

In the new Keynesian model,the immediate effect on inflation of an anticipated aggregate demand shock is ________.

• A)less than if that event was unanticipated
• B)greater than if that event was unanticipated
• C)the same as would develop if that event was unanticipated
• D)independent of whether or not that event is anticipated or unanticipated

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Definitions:

Cohort Differences

Variations in characteristics, experiences, or outcomes among groups of individuals born in different time periods, often studied in sociological and psychological research.

Longitudinal Studies

Research methods that observe the same subjects over a period of time, allowing for the examination of changes and development.

Positively Correlated

A relationship between two variables where an increase in one variable is associated with an increase in the other, indicating a direct relationship.

Causal Related

Pertaining to a cause-and-effect relationship between two or more factors.