New classical economists build their theories upon

Question

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New classical economists build their theories upon rational expectations, which means that they assume that individuals make decisions based on all available information and that they anticipate how markets will react to changes. This assumption is different from adaptive expectations, where individuals base their expectations on past experiences, and it is a key feature of the new classical approach. Inflexible wages and prices (B) are also a feature of the new classical model, but they are not as central as rational expectations. The assumption that it takes a long time for markets to achieve equilibrium values (D) is more characteristic of the old classical approach, which emphasized the importance of supply-side factors and long-run equilibrium.

New Classical Economists Build Their Theories Upon