The New Classical Model Has as Its Central Idea That

question 183

Multiple Choice

The new classical model has as its central idea that

• A)wage and price stickiness explain fluctuations in real GDP.
• B)workers and firms have rational expectations.
• C)the Federal Reserve should adopt a monetary growth rule.
• D)shifts in aggregate demand have no impact on real GDP.

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Definitions:

Job Performance

The level of effectiveness with which an individual fulfills the duties and responsibilities of their job.

Pollution

The contamination of the natural environment by harmful substances or energies.

Types

Categorizations or classes into which items can be grouped based on common characteristics.

Include

To take into account or consider as part of a group, list, or category.