In the new classical model, an unanticipated increase in the money stock would cause
a. the price level and the level of real output to rise.
b. the price level to rise with no effect on real output.
c. real output to rise with no effect on the price level.
d. no change in the price level or level of real output.
A
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The principle of ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up
A) marginal cost B) normative economics C) entrepreneurship D) opportunity cost
Which of the following is true of the law of supply?
a. The law of supply is the sole determinant of market prices. b. The law of supply states that as the price of a good rises, the quantity supplied rises. c. The law of supply holds good only in the long-run. d. The law of supply is valid only in a market system of allocation. e. The law of supply asserts that as the cost of producing a good rises, the quantity supplied rises.