The new classical economists hold that rational expectations and adaptive expectations by businesses and households are important factors standing in the way of the federal government's success in managing the economy.

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New classical economists argue that rational expectations by individuals and businesses make it difficult for government policy to systematically manage the economy, as people will anticipate the effects of policy changes and adjust their behavior accordingly, often offsetting the intended effects of those policies.

The New Classical Economists Hold That Rational Expectations and Adaptive