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According to New Classical Theory,if Policy Is Correctly Anticipated,expectations Are

question 144

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According to new classical theory,if policy is correctly anticipated,expectations are formed rationally,and wages and prices are fully flexible,then an increase in aggregate demand will change Real GDP,but not the price level.


Definitions:

Type A Personality

A personality type characterized by high levels of competitiveness, self-imposed stress, impatience, aggressiveness, and a constant sense of urgency.

Type C Personality

A personality style characterized by difficulty expressing emotions, a high level of detail orientation, and a tendency towards introversion.

Counterdependent Personality

A personality trait characterized by a strong resistance to depending on others or forming close relationships, often as a defensive mechanism.

Transformational Coping

A method of managing stress and psychological strain by altering one’s perspective on the stressor, often resulting in personal growth or change.

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