According to the new Keynesian school of thought, fiscal policy is a completely ineffective tool in combating supply-side shocks.

Name: According to the new Keynesian school of thought, fiscal policy is a completely ineffective tool in combating supply-side shocks.
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New Keynesian economics acknowledges that fiscal policy can be effective in addressing supply-side shocks by influencing demand and stabilizing the economy, although it may not directly address the supply constraints.

According to the New Keynesian School of Thought, Fiscal Policy