While Much of New Classical Macroeconomics Is Being Refuted by the Evidence,at

question 149

Multiple Choice

While much of New Classical macroeconomics is being refuted by the evidence,at least one part of it may be a permanent legacy to all economists.It is the insistence on a certain aspect of macroeconomic policy:

• A)It has as much impact on SAS as on AD.
• B)It has its impact on nominal and not real variables.
• C)People will try to anticipate it and then act accordingly.
• D)It has no impact on SAS or AD,but does affect LAS.

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Definitions:

Other Expenses

Costs that are not directly tied to production, sales, or main operations, such as interest payments or losses from asset sales.

Spending Variance

The difference between the actual amount spent and the budgeted or planned amount for a particular period or category.

Net Operating Income

Net Operating Income is the total revenue from operations minus operating expenses, excluding taxes and interest. It highlights a company's operational efficiency.

Revenue And Spending Variances

The differences between budgeted and actual figures for revenue and expenditures, used in budgetary control and financial analysis.