The new classical school of thought is usually associated with the theory of rational expectations
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
What is the government's major problem involved in reaching the optimal level of provision for public goods?
What will be an ideal response?
The Keynesian AS curve differs from the classical AS curve in that:
a. the classical AS curve assumes flexible nominal wages. b. the Keynesian AS curve is upward sloping. c. the Keynesian AS curve focuses on short-run behavior. d. b and c. e. all of the above.
How does production generate income?
What will be an ideal response?