Which of the Following Is the Basic Tenet of New

Multiple Choice

Which of the following is the basic tenet of new classical economics?

A) A change in the fiscal policy affects the equilibrium level of real GDP but has no impact on the equilibrium price level.
B) A government-induced shift in aggregate demand affects the real GDP only if they are expected by the economic agents.
C) A change in aggregate demand affects the aggregate price level only if the aggregate supply curve is perfectly elastic.
D) A change in monetary policy affects the equilibrium level of real GDP only if those changes are unexpected.
E) An expected change in a monetary or fiscal policy leads to a proportional shift of the long run supply curve.