The key difference between new classical cycle theory and new Keynesian cycle theory is that the new classical cycle theory believes that ________ while the new Keynesian cycle theory believes that ________.
A) expected changes in aggregate demand change real GDP; expected changes in aggregate demand do not change real GDP
B) only unexpected changes in aggregate demand change real GDP; only expected changes in aggregate demand change real GDP
C) only unexpected changes in aggregate demand change real GDP; both expected and unexpected changes in aggregate demand change real GDP
D) the short-run aggregate supply curve is horizontal; the short-run aggregate supply curve is vertical.
E) expected and unexpected changes in aggregate demand change real GDP; only changes in labour productivity change aggregate demand
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