According to New Classical Theory,if the Public Correctly Anticipates a Government

question 33

Multiple Choice

According to new classical theory,if the public correctly anticipates a government policy to increase aggregate demand,then the

• A) short-run Phillips curve will be upward sloping,but the long-run Phillips curve will be downward-sloping.
• B) long-run Phillips curve will be upward sloping,but the short-run Phillips curve will be downward-sloping.
• C) short-run Phillips curve will be upward sloping,but the long-run Phillips curve will be vertical.
• D) long run Phillips curve will be upward sloping,but the short-run Phillips curve will be vertical.
• E) short- and long-run Phillips curves will be vertical.

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