New classical economics is similar to classical economics in that both theories
A) differ from classical economics in that the latter focuses on the determination of long-run aggregate supply while the former focus on the determination of short-run aggregate supply.
B) are similar to classical economics in that both theories incorporate expectations in their analysis of the economy in the long-run.
C) differ from classical economics in that the latter focuses on producers' expectations only while the latter also includes consumers' expectations in the determination of long-run macroeconomic equilibrium.
D) are similar to classical economics in that both theories focus on the determination of long-run aggregate supply and the economy's ability to reach this level of output quickly.
Correct Answer:
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Q63: The economic theory based on an analysis
Q65: The hypothesis that assumes that individuals form
Q68: Figure 17-2 Q71: New classical economics contends that policy activism Q73: According to new classical economics, individuals will Q74: Monetarists argue that Q77: Economists who subscribe to the rational expectations Q79: According to Milton Friedman, any divergence in Q80: Which of the following groups of economists Q81: In the early 1990s, although the U.S.![]()
A) the Federal Reserve System
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