While much of New Classical macroeconomics is being refuted by the evidence,at least one part of it may be a permanent legacy to all economists.It is the insistence on a certain aspect of macroeconomic policy:
A)It has as much impact on SAS as on AD.
B)It has its impact on nominal and not real variables.
C)People will try to anticipate it and then act accordingly.
D)It has no impact on SAS or AD,but does affect LAS.

Question

Quizplus · Accepted Answer

The New Classical macroeconomics theory emphasized the importance of policy anticipation by the public. According to this theory, people will try to anticipate macroeconomic policies and take actions accordingly, especially in the case of monetary policy. This idea has become a permanent legacy and has been widely accepted by economists.

While Much of New Classical Macroeconomics Is Being Refuted by the Evidence,at