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 ?

Related Mcqs:

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 economists who emphasised wage flexibility as a solution for unemployment were ?

A. new-Keynesian. B. post-Keynesian. C. classical economists. D. Keynesian....

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....