-Refer to Exhibit 16-8

question 136

Multiple Choice

-Refer to Exhibit 16-8.Assume that the starting point is point 1.Suppose that the Fed implements expansionary monetary policy that raises aggregate demand.Which of the following best goes with the diagram shown?

• A) New classical theory with policy incorrectly anticipated,bias downward
• B) New classical theory with policy incorrectly anticipated,bias upward
• C) Real business cycle theory
• D) New classical theory with policy unanticipated
• E) Policy ineffectiveness proposition (PI

---

Definitions:

Particular Way

A specific method or manner of doing something.

Query

A request for information or data from a database, often written in a specific query language like SQL.

Records

In databases, records refer to collections of related data items, structured in fields, representing a single entity.

Criteria Row

A row in a spreadsheet where conditions are specified to filter data according to specific requirements.