Multiple Choice
One of the primary objections to the new classical model is that ________.
A) firms could easily get information about price movements and so would not be fooled for very long
B) price is negatively related to quantity demanded,but positively related to quantity supplied
C) business cycles are relatively brief in duration
D) it failed to incorporate rational expectations into its presentation
Correct Answer:
Verified
Correct Answer:
Verified
Q14: The level of income is unchanged in
Q15: In the new classical model,all wages and
Q16: In the new Keynesian model,if an aggregate
Q17: In the new classical model,workers and firms
Q18: In the real business cycle model,fluctuations in
Q20: The policy ineffectiveness proposition of the new
Q21: Discretionary economic policy is not beneficial in
Q22: Expansionary policy only leads to inflation,but does
Q23: No distinction is made between the effects
Q24: In real business cycle models,shifts of the