One Assumption of the New Classical Model Is That

question 65

Multiple Choice

One assumption of the new classical model is that

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

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Definitions:

Mutual Mistake

An error shared by all parties in a contract, leading to a misunderstanding regarding a fundamental fact or element of the agreement.

Fraud

Deliberate deception or misrepresentation intended to result in an unfair or unlawful gain.

Reformation

A legal remedy where a written agreement is officially corrected or amended to accurately reflect the true intentions of the parties involved.

Renegotiate

The process of revising the terms of an existing agreement or contract.