In the New Keynesian Model,if an Aggregate Demand Increase Is

question 16

Multiple Choice

In the new Keynesian model,if an aggregate demand increase is unanticipated,then ________.

• A)aggregate demand will not change
• B)short-run aggregate supply will shift up immediately
• C)short-run aggregate supply will shift down immediately
• D)there is no immediate effect on the short-run supply curve