New Classical Economists Differ from Traditional Classical Economists Because New

Multiple Choice

New classical economists differ from traditional classical economists because new classical economists

A) Focus on budget restraint and the use of monetary policy when the economy overheats.
B) Believe people's rational expectations will lead them to offset government policy.
C) Believe that economic failures are inherent in a capitalist economy.
D) Believe tax cuts and government spending should be used to increase demand and output.