New classical theories were an attempt to explain ?

Roots of Modern Macroeconomics 02/08/2021

A. how unemployment could have persisted for so long during the Great Depression
B. The increase in the growth rate of real output in the 1950s
C. the stagflation of the 1970s
D. Why policy changes that are perceived as permanent have more of an impact on a person’s behaviour than policy changes that are viewed as temporary.

Related Mcqs:

    Keynesian economics became popular because it was able to explain ?
    A. stagflation in the late 1970s B. demand-pull inflation in the 1960s C. low growth rates in the 1950s D. The prolonged existence of high unemployment during the Great depression...
    The government increase government spending to try to reduce unemployment This is an example of ?
    A. laissez-faire. B. monetary policy C. fine tuning D. automatic stablisers...
    The nation that the government can establish the macroeconomic is known as ?
    A. fine tuning B. monestarism C. microeconomics foundations of macroeconomics D. the classical model...
    The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?
    A. Rational-expectations hypothesis B. Passive-expectations hypothesis C. adaptive expectations hypothesis D. lagged-expectations hypothesis....
    People are said to have rational expectations if they ?
    A. assume that this year’s inflation rate will be the same as last year’s inflation rate B. merely guess at the inflation rate. C. assume that this year’s inflation rate will be equal to the average inflation rate over the past 10 years D. Use all available information in forming their expectations....

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