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:

Extra Money

Refers to additional income or funds received beyond regular earnings, which could come from bonuses, side jobs, or investments.

Procedural Justice

The fairness of the processes that are used to make decisions.

Strict Policy

A set of firm and unbending rules or guidelines that are rigorously enforced within an organization or system.

Disciplines

Branches of knowledge, often studied and applied as part of education or professional practice.