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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Definitions:

Total Inventory Cost

The complete cost associated with purchasing or producing inventory, including purchase price, conversion costs, and other costs.

Units Sold

The total number of a product that a company sells within a specific time period, often used to measure sales performance.

Periodic LIFO

Periodic LIFO (Last-In, First-Out) is an inventory valuation method used in accounting that assumes the most recently purchased items are sold first, and ending inventory costs are determined at the end of the accounting period.

Ending Inventory

The total value of all inventory a company has in its possession at the end of a reporting period, vital for calculating cost of goods sold.