New Classical Economics

Multiple Choice

New classical economics

A) differs 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) is similar to classical economics in that both theories incorporate expectations in their analysis of the economy in the long-run.
C) differs 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) is 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.