Which of the Following Models Has as Its Central Idea

question 101

Multiple Choice

Which of the following models has as its central idea that workers and firms have rational expectations?

• A) Monetarist model
• B) New classical model
• C) Real business cycle model
• D) New Keynesian model

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Definitions:

License

A permit from an authority to own or use something, do a particular thing, or carry out a trade.

Personal Privilege

A special right, advantage, or immunity granted to an individual based on status or relationship.

Tenancy in Common

A form of co-ownership where each party owns a separate fraction of the property and can transfer their interest independently.

Joint Tenancy

Joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants, his or her interest automatically passes to the surviving joint tenant(s).