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.

---

Definitions:

Matching to Standard

A process in operations management where outputs are compared with previously established standards or benchmarks to ensure quality and consistency.

Ethnolinguistic Vitality

Ethnolinguistic vitality is the concept that explains the persistence and survival of ethnic groups through their unique languages, cultural practices, and sense of community.

Political Influence

The capacity to affect government actions, policies, or decisions through various forms of advocacy or persuasion.

High Birth Rate

A demographic scenario where the number of live births per thousand people in a population is significantly above the average.