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:

Method Of Equal Alternatives

A problem-solving technique that involves systematically comparing different solutions or options.

Intuitive Judgment

The ability to understand or make decisions based on a direct perception of truth, independent of any reasoning process.

Conjunction

In logic and grammar, it refers to the combination of two statements or clauses linked in such a way that both must be true for the combined statement to be true.

Chess Set

A collection of 32 chess pieces, including kings, queens, bishops, knights, rooks, and pawns, used in the game of chess along with a chessboard.