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If During a Three-Year Period Policymakers Attempt to Keep Unemployment

Question 76

Multiple Choice

If during a three-year period policymakers attempt to keep unemployment below the natural rate of unemployment, in the new Keynesian view


A) the LRAS curve will shift to the right.
B) the LRAS curve will shift to the left.
C) the total amount of output produced during the period will be smaller than in the new classical view.
D) the total amount of output produced during the period will be greater than in the new classical view.

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