While Much of New Classical Macroeconomics Is Being Refuted by the Evidence,at

question 168

Multiple Choice

While much of New Classical macroeconomics is being refuted by the evidence,at least one part of it may be a permanent legacy to all macroeconomists: the assumption of

• A)continuous clearing of all markets.
• B)rational expectations.
• C)the unimportance of nominal variables.
• D)supply shocks as the main cause of business cycles.

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Definitions:

Transactive Memory

A collective system for encoding, storing, and retrieving information within a close-knit group, allowing for more efficient knowledge sharing.

Social Decision Schemes

The rules or methods groups use to aggregate individual members' opinions, preferences, or judgments to reach a collective decision.

CESs (Critical Evaluation Standards)

Criteria or benchmarks used to assess the validity, reliability, and relevance of information, arguments, or methodologies in academic and professional fields.

Implementation Stage

The phase in a project or plan where strategies and actions are executed or put into operation.