Which Statement About New Classical Macroeconomics Is FALSE

question 58

Multiple Choice

Which statement about new classical macroeconomics is FALSE?

• A) It returned to the classical view that shifts in the aggregate demand curve affect only the aggregate price level, not aggregate output.
• B) It challenged traditional arguments about the slope of the short-run aggregate supply curve based on the concept of rational expectations.
• C) It suggested that changes in productivity cause economic fluctuations.
• D) It embraced the Keynesian notion that changes in aggregate demand may affect aggregate output in the short run.

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