According to new classical model,real wages
A) rise when income rises.
B) falls when income rises.
C) do not move within income.
D) fall if the expected price level is too high and rise if the expected price level is too low.
E) none of the above.
Correct Answer:
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Q14: Suppose that the Federal Reserve makes an
Q15: Explain the new classical theory explanation of
Q16: In the view of the new classical
Q17: Aggregate supply in the new classical aggregate
Q18: In the new classical view,an anticipated decrease
Q20: Discuss the new classical critique of Keynesian
Q21: In the new classical model,stabilization policies
A)cannot affect
Q22: Monetarists and Keynesians agree that expectations are
A)backwards-looking.
B)rational.
C)unstable.
D)forwards-looking.
Q23: When expectations are rational,
A)a foreseen expansionary policy
Q24: Keynesians disagree with the new classical model
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