Which of the Following Are TRUE

question 171

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, II and III
• B) II and III
• C) I and II
• D) I and III

---

Definitions:

Controversial

Pertaining to topics, issues, or opinions that provoke public disagreement or debate due to differing views and beliefs.

Validity

The degree to which evidence and theory support the interpretations of test scores entailed by proposed uses of tests.

Disability

A condition, either physical or mental, that significantly restricts an individual's ability to perform certain tasks or activities considered normal for most people.

Culture-Fair Test

A type of intelligence test designed to be free from cultural bias, minimizing the impact of language, cultural background, and education on test performance.