Which statement about new classical macroeconomics is FALSE?
A) It returned to the classical view that shifts in the aggregate demand curve affect only the aggregate price level, not aggregate output.
B) It challenged traditional arguments about the slope of the short-run aggregate supply curve based on the concept of rational expectations.
C) It suggested that changes in productivity cause economic fluctuations.
D) It embraced the Keynesian notion that changes in aggregate demand may affect aggregate output in the short run.
Correct Answer:
Verified
Q119: The natural rate hypothesis:
A) is now generally
Q120: From 1979 to 1982, the Federal Reserve
Q121: Rational expectations theory asserts that because people
Q122: Which statement BEST explains why the Fed
Q123: New classical macroeconomists believe that the short-run
Q125: Since 1982, the Federal Reserve has:
A) pursued
Q126: According to rational expectations, monetary policy is:
A)
Q127: Proponents of the theory of rational expectations
Q128: The theory of rational expectations states that:
A)
Q129: Which statement is FALSE?
A) Early Keynesianism downplayed
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents