One Assumption of the New Classical Model Is That

question 55

Multiple Choice

One assumption of the new classical model is that

• A) money wage rates are rigid.
• B) prices are "sticky" upward.
• C) people make rational expectations about aggregate demand.
• D) markets are not purely competitive.

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Definitions:

Equivalent Expression

Expressions that are different in form but yield the same result under the same conditions.

Price *=

The "Price *=" operator is used in programming to multiply the variable on the left by the value on the right and then assign the result back to the variable on the left.