New Classical Macroeconomists Believe That the Predominant Factor Causing Fluctuations

question 1

Multiple Choice

New classical macroeconomists believe that the predominant factor causing fluctuations in aggregate demand is

• A) increases in taxes.
• B) instability in the investment function.
• C) the weak self-regulating mechanisms of a free enterprise economy.
• D) the unstable marginal propensity to consume.
• E) erratic and unpredictable government policy.

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