According to the new classical system,
a. an anticipated change in aggregate demand will cause labor suppliers to make price forecast errors and will, therefore, affect output and employment.
b. anticipated changes in aggregate demand will not affect output and employment because labor suppliers have perfect information about the price level.
c. unanticipated changes in aggregate demand will shift both the aggregate demand schedule and the aggregate supply schedule.
d. both b and c.
e. None of the above
ANSWER
B
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