According to the new classical model,
a. anticipated declines in aggregate demand would move output and employment below the full-employment levels.
b. announced declines in aggregate demand do not change output and employment above the full-employment levels.
c. anticipated declines in aggregate supply would only put employment below the full-employment level.
d. unanticipated declines in aggregate demand would cause output and employment to fall below the full-employment levels.
e. both c and d.
E
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Refer to the figure below. At a price of $2, the total expenditure on lattes each hour equals:
A. $60. B. $80. C. $30. D. $40.
Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this flu decreases as more people receive the vaccine. One of the demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine. The private demand for the vaccine is given by ________, and social demand for the vaccine is given by ________.
A. D2; MC B. D2; D1 C. D1; MC D. D1; D2