According to the New Classical Macroeconomists,each of the Following Statements

question 3

Multiple Choice

According to the new classical macroeconomists,each of the following statements is true EXCEPT:

• A)Disinflation will be harder to bring about because of the time-inconsistency problem.
• B)Policymakers are tempted to deviate from the preannounced policy once the public changes its expectations.
• C)Feedback rules are preferred to discretionary rules.
• D)Disinflation will be painless if the restrictive policies announced by the government are credible.

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Definitions:

Behaviourist

A person who specializes in behaviorism, a branch of psychology that focuses on observable behaviors and disregards mental processes.

Social Learning

The process of acquiring skills, behaviors, and attitudes through observing and imitating others.

Unconscious Forces

pertain to the mental processes that occur without our conscious awareness, influencing behaviors and thoughts, according to Freudian psychology.

Personality Traits

Enduring characteristics that describe an individual's consistent behaviors, thoughts, and emotional patterns.