Activist policy is NOT effective according to which model?
A) standard Keynesian
B) new classical
C) new Keynesian
D) It is effective for all of them.

Question

Quizplus · Accepted Answer

The new classical model argues against the effectiveness of activist policies, suggesting that individuals' expectations adjust to neutralize government intervention, making such policies ineffective in influencing real output or employment in the long run.

Activist Policy Is NOT Effective According to Which Model