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    Economics Study Set 7
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    Exam 25: Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical
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    According to New Classical Economics, Fiscal Policy Can Change Equilibrium
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According to New Classical Economics, Fiscal Policy Can Change Equilibrium

Question 87

Question 87

True/False

According to new classical economics, fiscal policy can change equilibrium real GDP only if it changes the price level or one of the determinants of aggregate supply, and people expect this change.

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