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smitch6 smitch6
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6 years ago
In the New Keynesian model, if there are shocks to government spending, and the central bank always reduces the output gap to zero,
A) the model replicates the key business cycle facts.
B) consumption is countercyclical.
C) employment is countercyclical.
D) investment is procyclical.
E) the money supply is constant.
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Macroeconomics, Canadian Edition

Macroeconomics, Canadian Edition


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