According to the New Classical Macroeconomists,the Gap Between Actual and Potential

question 26

Multiple Choice

According to the new classical macroeconomists,the gap between actual and potential output is a result of

• A) perfectly inflexible wages and prices.
• B) a horizontal short-run aggregate supply curve.
• C) the inability to accurately estimate depreciation when measuring national output.
• D) anticipated changes in the money supply.
• E) random forecasting errors.

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