New classical economists say that an unanticipated decrease in aggregate demand first
A) decreases the price level and real output, and then decreases long-run aggregate supply.
B) decreases long-run aggregate supply, and then decreases the price level and real output.
C) reduces short-run aggregate supply, and then reduces long-run aggregate supply.
D) decreases the price level and real output, and then increases short-run aggregate supply such that the economy returns to the full-employment level of output.
Correct Answer:
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Q42: New classical economists say that an unanticipated
Q43: Q44: A coordination failure Q45: When most consumers and firms reduce spending Q46: According to new classical economists, the Q48: New classical economists Q49: Rational expectations theory is based on the Q50: Rational expectations theory assumes that Q51: Rational expectations theory implies that the Q52: New classical economists say that a fully
A) is a real-business-cycle event.
B)
A) short-run
A) stress the importance of
A) people behave
A) aggregate
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