Which of the following stresses the inability of the government to improve short-run market outcomes?
A) Monetary policy
B) New classical economics
C) Supply-side policy
D) Fiscal policy

Question

Quizplus · Accepted Answer

New classical economics emphasizes that the government's ability to improve short-run market outcomes is limited due to the rational behavior of individuals and the market's ability to adjust. Monetary policy, fiscal policy, and supply-side policy all imply that the government can have an impact on short-run market outcomes.

Which of the Following Stresses the Inability of the Government