In the new classical model, the aggregate supply schedule depends on
a. the expected level of the money stock.
b. the expected price level.
c. the expected values of fiscal policy variables and other possible determinants of aggregate demand.
d. Both a and c
e. All of the above
B
Economics
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According to this Application, after the government deceased cigarette taxes in several Canadian provinces in 1994, the price of cigarettes in these provinces decreased by roughly ________ percent
A) 8 B) 17 C) 50 D) 88
Economics
Most Keynesians suggest that the Fed
A) use discretion in setting monetary policy. B) use fiscal policy to combat unemployment in the short run. C) follow a rule, such as keeping the money growth rate at 3%, regardless of the state of the economy. D) use fiscal policy to combat inflation in the long run.
Economics