While Much of New Classical Macroeconomics Is Being Refuted by the Evidence,at

question 168

Multiple Choice

While much of New Classical macroeconomics is being refuted by the evidence,at least one part of it may be a permanent legacy to all macroeconomists: the assumption of

• A)continuous clearing of all markets.
• B)rational expectations.
• C)the unimportance of nominal variables.
• D)supply shocks as the main cause of business cycles.

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Definitions:

Strange Situation

A standardized procedure devised by Mary Ainsworth to observe attachment relationships between a caregiver and children.

Facial Expression

The movement and configuration of facial muscles to convey emotions or reactions without verbal communication.

Emotional Tone

The underlying mood or emotional atmosphere conveyed by a particular environment, situation, or piece of writing, often influencing the overall emotional response of an individual.

Surrogate Mothers

Women who carry and deliver a child for another person or couple, often through a legal or informal arrangement.