Which of the following groups believes that the private sector takes actions based on rational expectations to offset policy actions?
A)Keynesians.
B)New classical economists.
C)Supply-siders.
D)Marxists.

Question

Quizplus · Accepted Answer

New classical economists believe that the private sector takes actions based on rational expectations to offset policy actions. Keynesians, on the other hand, believe that the private sector may not always act rationally and may need government intervention to stabilize the economy. Supply-siders focus on reducing taxes and regulations to stimulate economic growth, while Marxists critique the entire capitalist system and argue for socialist policies.

Which of the Following Groups Believes That the Private Sector