The new classical macroeconomists believe that people should form expectations by
A) actually seeking to forecast the future.
B) assuming that the future will be like the past.
C) assuming that the future will be like the present.
D) overlooking information that allows them to make more accurate forecasts.

Question

Quizplus · Accepted Answer

New classical macroeconomists believe that people should form expectations by actually seeking to forecast the future, using all available information and data. This is in contrast to assumptions used by other schools of thought, such as the Keynesian economists, who may assume that the future will be similar to the past or present.

The New Classical Macroeconomists Believe That People Should Form Expectations