Which of the Following Is the Basic Tenet of New

question 31

Multiple Choice

Which of the following is the basic tenet of new classical economics?

• A)A change in the fiscal policy affects the equilibrium level of real GDP but has no impact on the equilibrium price level.
• B)A government-induced shift in aggregate demand affects the real GDP only if they are expected by the economic agents.
• C)A change in aggregate demand affects the aggregate price level only if the aggregate supply curve is perfectly elastic.
• D)A change in monetary policy affects the equilibrium level of real GDP only if those changes are unexpected.
• E)An expected change in a monetary or fiscal policy leads to a proportional shift of the long run supply curve.

Recognize the role of intrinsic and extrinsic motivation in enhancing employee retention and productivity.

Distinguish between various human capital strategies and their contributions to revenue growth.

Grasp the significance of providing clear expectations and resources for job performance.

Learn the importance of recognizing and nurturing employees' strengths and contributions.

---

Definitions:

Product

Any item or service that is created through a process and is intended to be supplied to a market to satisfy a want or need.

Fixed Costs

Expenses that do not change in total despite fluctuations in the volume of goods or services produced.

Sunk Costs

Costs that have already been incurred and cannot be recovered or changed, which should not influence future business decisions.

Opportunity Costs

The value of the best alternative forgone in making any decision, representing the benefits that could have been received from that alternative.