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Which of the following statements would be associated with new classical economics?

A. Economic problems can best be addressed by reducing taxation and regulation and thus increasing incentives to save and invest.
B. Because there are significant lags in recognizing and implementing activist policies, the best government policy is nonintervention.
C. Because wages and prices are sticky and it can take a long time for the economy to return to full employment, the government should intervene in the macroeconomy.
D. Since expectations are rational, anticipated policy changes will have no effect on real output, and only "surprises" matter.

User Skrealin
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Your answer is A (:
User Pragalathan  M
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