The main criticism leveled at the rational expectations school of economic thought is that
A) they assume too much influence due to monopoly power.
B) they just go too far in ascribing rationality to the general population.
C) the assumption that the velocity of circulation is predictable in the short run is not borne out by the facts.
D) the assumption that labor union contracts create a rigid wage structure is unrealistic.
Correct Answer:
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Q168: The crude quantity theory of money and
Q169: Keynesians
A)believe capitalism is inherently unstable.
B)contend that government
Q170: The classical economists believed all of the
Q171: According to Keynes,
A)supply creates its own demand.
B)the
Q172: Which of the following statements is true?
A)Keynesians
Q174: Statement I: According to the rational expectations
Q175: According to supply-side economists,
A)high tax rates discourage
Q176: The classical economists espoused
A)the crude version of
Q177: According to the rational expectationists
A)the so-called recessionary
Q178: According to the classical economists,if the money
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