If autonomous consumption rises more than expected, then output rises under the
A) new classical model.
B) new Keynesian model.
C) both of the above.
D) none of the above.

Name: If autonomous consumption rises more than expected, then output rises under the A) new classical model. B) new Keynesian model. C) both of the above. D) none of the above.
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Question

Quizplus · Accepted Answer

In both the new classical and new Keynesian models, an increase in autonomous consumption leads to an increase in output.

If Autonomous Consumption Rises More Than Expected, Then Output Rises