Which of the following statements would most likely be made by someone following New Classical economic Multiple Choice A set of contractionary monetary policies would help to reduce the inflation rate. The economy just experienced a demand shock, the markets will correct to reduce unemployment.

Which of the following statements would most likely be made by someone following New Classical economic Multiple Choice A set of contractionary monetary policies would help to reduce the inflation rate. The economy just experienced a demand shock, the markets will correct to reduce unemployment.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter15: Macroeconomic Viewpoints: New Keynesian, Monetarist, And New Classical

Section: Chapter Questions

Problem 5E

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Question

Which of the following statements would most likely be made by someone following New Classical economic models?
Multiple Choice
A set of contractionary monetary policies would help to reduce the inflation rate.
The economy just experienced a demand shock, the markets will correct to reduce unemployment.
The economy has been experiencing sustained unemployment, government intervention is necessary.
The level of government intervention in the last recession was not enough to impact the market.

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