According to the classical economists the economy ?

Related Mcqs:

The rational-expectation hypothesis suggests that the forecasts that people make concerning future inflation rates ?

A. consistently overestimate the actual rate of inflation in the future. B. are always correct C. consistently underestimate the actual rate of inflation in the future D. are correct on average, but are subject to errors that are distributed randomly...

The persistence of a phenomenon such as unemployment, even then its causes have been removed is called ?

A. the fallacy of composition B. negative entropy. C. hysteresis. D. ceteris paribus...

If the demand for money depends on the interest rate the velocity of circulation is ?

A. not constant and the quantity theory of money does hold. B. constant and the quantity theory of money does hold. C. not constant and the quantity theory of money does not hold. D. constant and the quantity theory of money does not hold....

A group of modern economists who believe that institutional factors and confidence strongly influence business behaviour and that expanding demand will usually increase output rather than prices are the ?

A. monetarists. B. keynesians C. post-keynesians D. new classical school...

The regarding the new classical macroeconomics is hoe realistic is the assumption ?

A. that monetary policy affects aggregates demand B. that markets do not clear quickly C. that fiscal policy affects aggregate demand D. of rational expectations....