In the New Keynesian Model,the Ultimate Effect on Output of an Anticipated

question 52

Multiple Choice

In the new Keynesian model,the ultimate effect on output 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 had never occurred
• D)dependent on whether or not that event is temporary or permanent

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Definitions:

Mortality Table

A mortality table, or life table, is a statistical chart used in insurance to give the probability of death for people at different ages, helping in the assessment of risk.

Social Security Taxes

Taxes levied on both employers and employees to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Tax Refund

A tax refund is the return of excess taxes paid by an individual or business to the government, usually received after the annual tax return is processed.

Whole Life Insurance

A type of insurance that combines a life insurance policy with an investment feature; policyholders pay a premium that is divided between the insurance portion and the investment portion.