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

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Definitions:

Particle Nature

The characteristic of matter to exhibit properties of particles, including mass and discrete boundaries, observable in phenomena like the photoelectric effect.

Wave Nature

Wave Nature relates to the characteristics of particles, such as photons and electrons, to exhibit properties typical of waves, including interference and diffraction.

Blue Irises

Refers to a physical trait where the irises of the eyes have a blue pigment.

Iris

The iris is the colored part of the eye that surrounds the pupil and controls the amount of light that enters the eye by adjusting the size of the pupil.