The New Classical Macroeconomists Stress That Output Fluctuations and Unemployment

Multiple Choice

The new classical macroeconomists stress that output fluctuations and unemployment

A) result from random errors and cannot be minimized by government stabilization policies.
B) require rational government actions to reduce the gap between actual and potential output.
C) will disappear if most large industries are nationalized.
D) are absent in a free market capitalist economy.
E) can be minimized if all sectors of the economy rationally expect high rates of inflation.