Proponents of the New Classical Macroeconomics Do Not Believe Which

question 149

Multiple Choice

Proponents of the new classical macroeconomics do not believe which of the following?

• A)Expansionary monetary policy can be an effective policy tool.
• B)Workers and firms use information contained in Bank of Canada policy to form inflation expectations.
• C)Wages and prices will adjust rapidly in the economy.
• D)The economy will normally be at its potential level.
• E)The economy is generally stable.

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Definitions:

Identity Vs. Role Confusion

This term refers to a stage in Erik Erikson's theory of psychosocial development where adolescents explore their independence and develop a sense of self.

Generativity Vs. Stagnation

A stage of adult development, according to Erik Erikson, focusing on the challenge of contributing to society and supporting future generations.

Trust Vs. Mistrust

Erickson's first stage of psychosocial development where infants learn to trust others based on the consistency of caregivers' responses, or develop mistrust.

Autonomy Vs. Self-Doubt

A stage in Erik Erikson's theory of psychosocial development where toddlers work to master physical environment while maintaining a sense of self-control and autonomy, as opposed to feeling inadequate and doubtful of their abilities.