Which of the Following Statements Is False

question 36

Multiple Choice

Which of the following statements is false?

• A)Keynesians,like classicals,believe that people's expectations are formed based on the rational expectations hypothesis.
• B)Keynesians,like classicals,recognize the effect of productivity shocks on the business cycles.
• C)Keynesians,like classicals,believe that the free market is able to respond quickly and efficiently to the aggregate demand shocks.
• D)Keynesians,unlike classicals,believe that aggregate demand shocks are the main source of the business cycles.