Figure 28-9 -Refer to Figure 28-9. a Follower of the New Classical

question 91

Multiple Choice

Figure 28-9
-Refer to Figure 28-9. A follower of the new classical macroeconomics would argue that a contractionary monetary policy to lower inflation after a supply shock, like that pursued by Volcker in 1979, would result in a movement from

• A) A to D to C.
• B) A to B.
• C) C to D to A.
• D) C to A.
• E) A to C.

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