In the New Keynesian Sticky Wage Model,an Increase in the Money

question 48

Multiple Choice

In the New Keynesian sticky wage model,an increase in the money supply

• A) shifts the output supply curve to the right.
• B) shifts the output supply curve to the left.
• C) shifts the output demand curve to the right.
• D) shifts the output demand curve to the left.
• E) immediately closes the output gap.

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Definitions:

Indifference Curve

A graph showing different combinations of two goods among which a consumer is indifferent.

Increase in Income

A situation where an individual or entity experiences a rise in their earnings or revenue over a period.

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