According to the New Classical Theory, ________ Policy Changes Have

question 155

Multiple Choice

According to the new classical theory, ________ policy changes have no effect on real GDP and according to the new Keynesian theory, ________ policy changes have an effect on real GDP.

• A) expected; expected
• B) unexpected; expected
• C) fiscal; monetary
• D) fiscal; fiscal

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Definitions:

Hearing

The sensory function that enables the perception of sound, facilitated by the ears.

Sphygmomanometer

An instrument for measuring blood pressure; consists of an inflatable cuff, a pressure bulb used to inflate the cuff, and a device to read the pressure.

Blood Pressure

Blood pressure is the measure of the force that blood exerts on the walls of the arteries as it flows through them.

Disposable Instruments

Medical tools designed for single use to prevent cross-contamination between patients and ensure sterility.