The New Classical Explanation of Aggregate Supply Is Also Known

question 33

Multiple Choice

The new classical explanation of aggregate supply is also known as

• A)Monetarism.
• B)Keynesianism.
• C)the misperception theory.
• D)the adaptive expectations theory.

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Definitions:

Overhead Costs

Expenses associated with running a business that cannot be directly tied to a specific product or service, such as rent, utilities, and management salaries.

Cost Driver

A factor that causes the cost of an activity or a process to change.

Activity Drivers

Factors that influence the cost of business activities by determining the level of effort or resources required.

Labour Hours

Refers to the total amount of work time spent by employees, including both direct and indirect labor activities.