Multiple Choice
Which of the following statements is false?
A) Keynesians,like classicals,believe that people's expectations are formed based on the rational expectations hypothesis.
B) Keynesians,like classicals,recognize the effect of productivity shocks on the business cycles.
C) Keynesians,like classicals,believe that the free market is able to respond quickly and efficiently to the aggregate demand shocks.
D) Keynesians,unlike classicals,believe that aggregate demand shocks are the main source of the business cycles.
Correct Answer:

Verified
Correct Answer:
Verified
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