According to New Keynesian Theory,if Policy Is Correctly Anticipated,increases in Aggregate

question 92

Multiple Choice

According to new Keynesian theory,if policy is correctly anticipated,increases in aggregate demand will stimulate the economy to higher levels of Real GDP and lower levels of unemployment in

• A) the short run or the long run.
• B) neither the short run nor the long run.
• C) the short run,but not in the long run.
• D) the long run,but not in the short run.

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Definitions:

Espionage Act

A United States federal law passed in 1917 that was designed to prevent the support of U.S. enemies during wartime, making it a crime to promote insubordination in the military or to interfere with military recruitment.

AFL

The American Federation of Labor, a national federation of labor unions in the United States founded in 1886, focusing on better wages, hours, and working conditions.

War Effort

The collective actions and resources of a nation or group of nations mobilized to support military operations during a time of war.

War Industries Board

An agency of the U.S. government created in World War I to manage the creation of materials for the war and distribute industrial goods.