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

question 74

Multiple Choice

In the new Keynesian model,the ultimate 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 had never occurred
• D)independent of whether or not that event is anticipated or unanticipated

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Definitions:

Pleasure Principle

The driving force of the id that seeks immediate gratification of all desires, wants, and needs.

Secondary Process Thinking

A concept in psychoanalytic theory referring to the rational and conscious thought processes guided by reality.

Internalization

The process of incorporating the beliefs, attitudes, or values of others into one's own belief system.

Moral Standards

Rules or principles governing what is considered right or wrong behavior.