In the New Keynesian Model,the Immediate Effect on Inflation of an Anticipated

question 57

Multiple Choice

In the new Keynesian model,the immediate effect on inflation 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 was unanticipated
• D)independent of whether or not that event is anticipated or unanticipated