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.

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Definitions:

Intangible Property

Refers to non-physical assets such as intellectual property, copyrights, and trademarks.

Physical Existence

The state of having a real, tangible presence in the physical world.

Private Property

Land or belongings owned by individuals or entities that are not the government, encompassing exclusive rights of use and disposal.

Warehouseman

A person or company involved in the business of storing goods for others in a warehouse for compensation.