Multiple Choice
Which of the following are TRUE?
I.New Keynesian economists believe that money wage rates are influenced by rational expectations of the price level.
II.New classical economists believe that money wage rates are influenced by rational expectations of the price level.
III.New classical economists believe expected changes in aggregate demand trigger business cycles.
A) I and II
B) I and III
C) II and III
D) I, II and III
Correct Answer:
Verified
Correct Answer:
Verified
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