25. Which of the following is inconsistent with New Classical School of economics?
(A) If the government announces its intended tight monetary policy, reducing inflation needs not be at
the cost of increased unemployment
(B) If expected inflation is not equal to the realized one, the labor market is not at full employment
(C) If there are negative shocks to aggregate demand, there is no need for government economic
policy to intervene
(D) Surprises in monetary policies does not affect the real output