Which Statement About New Classical Macroeconomics Is False
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.