In the New Classical Model,an Anticipated Policy of a Continually

question 17

Multiple Choice

In the new classical model,an anticipated policy of a continually increasing money supply causes

• A)aggregate demand increases along a stationary aggregate supply curve,leading to continually increasing aggregate output and prices.
• B)aggregate supply decreases along a stationary aggregate demand curve,leading to continually contracting aggregate output and prices.
• C)aggregate demand continually increases while simultaneously aggregate supply continually decreases,leading to higher and higher price levels.
• D)aggregate demand continually decreases while simultaneously aggregate supply continually increases,leading to higher and higher price levels.