According to the new classical system, a. an anticipated ...

[newbem]

According to the new classical system,
 
  a. an anticipated change in aggregate demand will cause labor suppliers to make price forecast errors and will, therefore, affect output and employment.
  b. anticipated changes in aggregate demand will not affect output and employment because labor suppliers have perfect information about the price level.
  c. unanticipated changes in aggregate demand will shift both the aggregate demand schedule and the aggregate supply schedule.
  d. both b and c.
  e. None of the above

Question 2

The arguments of Kessel and Alchien (1959) on the terms of trade and the question of who paid for the Civil War (18611865) conclude that 40 percent of the war's burden fell on
 
  (a) those who exported manufactures.
  (b) those who purchased imports.
  (c) farmers alone.
  (d) the economy as a whole.

[iceage]

Answer to Question 1

B

Answer to Question 2

(b)