While much of New Classical macroeconomics is being refuted by the evidence,at least one part of it may be a permanent legacy to all macroeconomists: the assumption of
A)continuous clearing of all markets.
B)rational expectations.
C)the unimportance of nominal variables.
D)supply shocks as the main cause of business cycles.

Question

Quizplus · Accepted Answer

Rational expectations have been widely accepted and integrated into macroeconomic models even outside of the New Classical framework.

While Much of New Classical Macroeconomics Is Being Refuted by the Evidence,at