According to the New Classical School, an Expected Increase in Government

question 45

Multiple Choice

According to the new classical school, an expected increase in government spending is associated with:

• A)a downward movement along the long-run Phillips curve.
• B)an upward movement along the short-run Phillips curve.
• C)a parallel outward shift of the long-run Phillips curve.
• D)an upward movement along the long-run Phillips curve.
• E)a downward shift of the short-run Phillips curve.

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