Traditional treatments of macroeconomic expectations are not consistent with the assumptions of
A) Keynesian policy.
B) fiscal policy.
C) microeconomics.
D) all of the above

Question

Quizplus · Accepted Answer

Traditional treatments of macroeconomic expectations are not consistent with the assumptions of microeconomics. This is because traditional macroeconomic theory assumes that individuals and businesses make decisions based solely on past trends and do not take into account future expectations or predictions. Microeconomic theory, on the other hand, emphasizes the importance of forward-looking behavior and rational decision-making based on future expectations.

Traditional Treatments of Macroeconomic Expectations Are Not Consistent with the Assumptions