One Assumption of the New Classical Model Is That

question 47

Multiple Choice

One assumption of the new classical model is that

• A) markets are not purely competitive.
• B) money wage rates are rigid.
• C) people make rational expectations about aggregate demand.
• D) prices are ʺstickyʺ upward.

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Definitions:

Slope

A measure of the steepness or incline of a line, typically expressed as a ratio of vertical change to horizontal change.

Monthly Income

The total amount of income earned or received by an individual or household within a month.

Quantities

Amounts or volumes of a product, substance, or item, usually measured or counted.

Monthly Income

The total amount of income or earnings generated by an individual or entity in a month.