According to the New Classical Macroeconomists,the Only Government Policy Changes

question 21

Multiple Choice

According to the new classical macroeconomists,the only government policy changes that can have a substantial impact on output or employment are those that

• A) are announced well in advance.
• B) involve large budget deficits.
• C) are discretionary, rather than adhering to a rule.
• D) are unanticipated by businesses and households.
• E) are designed to control wages and prices.

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