New classical economists believe that the classical model
a. with the rational expectations assumption added provides a role for activist stabilization policies.
b. is a poor starting point to construct new macroeconomic models.
c. with the rational expectations assumption substituted for the perfect information assumption provides a starting point for constructing useful macroeconomic models.
d. is equivalent to the monetarist model.
e. both c and d.
B
You might also like to view...
If your income rises by 25 percent and, as a result, you buy fewer packages of Ramen Noodles, then Ramen Noodles are a(n)
A) substitute. B) normal good. C) complement. D) inferior good.
If goods X and Y are such that the cross price elasticity between them is negative, and if the income elasticity of X is negative, then these goods are
a. inferior complements b. luxury complements c. income elastic substitutes d. normal substitutes e. income elastic complements
Equilibrium is the point where total spending equals total output, or GDP.
Answer the following statement true (T) or false (F)
The table below shows the number of labor hours required to produce one gallon of wine and one pound of cheese in the United States and France. The United States has a comparative advantage in the production of Labor hours to make:In the United StatesIn France1 gallon of wine4.001.001 pound of cheese1.002.00
A. both goods. B. neither cheese nor wine. C. only cheese. D. only wine.