Which of the Following Accurately Describes the New Classical View

question 84

Multiple Choice

Which of the following accurately describes the new classical view of stabilization policy?

• A)Changes in monetary policy do not affect output in the short run.
• B)Policy changes which are unexpected are likely to introduce substantial uncertainty in household and business decisionmaking, causing output to become more volatile.
• C)There's no need for stabilization policy since the economy operates at its full-employment level in the short run.
• D)Rational expectations negates any effect of stabilization policy.

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Definitions:

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Sexual Identity

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