One of the Primary Objections to the New Classical Model

question 19

Multiple Choice

One of the primary objections to the new classical model is that ________.

• A)firms could easily get information about price movements and so would not be fooled for very long
• B)price is negatively related to quantity demanded,but positively related to quantity supplied
• C)business cycles are relatively brief in duration
• D)it failed to incorporate rational expectations into its presentation

---

Definitions:

Demand Curve

A chart that represents the correlation between a product's price and the amount of that product buyers are prepared and capable of buying at different price levels.

Hamburgers

A popular fast food item consisting of a cooked patty, usually of ground beef, placed inside a sliced bun, often served with various accompaniments and condiments.

Hot Dogs

A type of food consisting of a grilled or steamed sausage served in the slit of a partially sliced bun.

Market

A venue where buyers and sellers come together to exchange goods, services, or information, either physically or virtually.