In the New Keynesian Model,the Ultimate Effect on Output of an Anticipated

question 52

Multiple Choice

In the new Keynesian model,the ultimate effect on output of an anticipated aggregate demand shock is ________.

• A)less than if that event was unanticipated
• B)greater than if that event was unanticipated
• C)the same as would develop if that event had never occurred
• D)dependent on whether or not that event is temporary or permanent