Figure 27-4
-In the new classical model in Figure 27-4,the initial impact of an anticipated increase in aggregate demand that is less than expected ________.
A) increases output from Yn to Y2, and the inflation rate from P1 to P2
B) decreases output from Yn to Y5, and increases the inflation rate from P1 to P5
C) decreases output from Yn to Y4, and increases the inflation rate from P1 to P4
D) does not change output and increases the inflation rate from P1 to P3

Question

Figure 27-4 
-In the new classical model in Figure 27-4,the initial impact of an anticipated increase in aggregate demand that is less than expected ________.
A) increases output from Yn to Y2, and the inflation rate from P1 to P2 
B) decreases output from Yn to Y5, and increases the inflation rate from P1 to P5 
C) decreases output from Yn to Y4, and increases the inflation rate from P1 to P4 
D) does not change output and increases the inflation rate from P1 to P3

Quizplus · Accepted Answer

The Answer of Figure 27-4 
-In the new classical model in Figure 27-4,the initial impact of an anticipated increase in aggregate demand that is less than expected ________.
A) increases output from Yn to Y2, and the inflation rate from P1 to P2 
B) decreases output from Yn to Y5, and increases the inflation rate from P1 to P5 
C) decreases output from Yn to Y4, and increases the inflation rate from P1 to P4 
D) does not change output and increases the inflation rate from P1 to P3

Figure 27-4 -In the New Classical Model in Figure 27-4,the Initial Impact