Which of the following demonstrates that policymakers cannot know the outcome of their decisions without knowing the public's expectations of them?
A)traditional Keynesian theory
B)Post Keynesian theory
C)real business cycle theory
D)new classical theory

Question

Quizplus · Accepted Answer

New classical theory maintains that people make rational decisions in their best interest based on their expectations of the future. This suggests that policymakers cannot accurately predict the outcome of their decisions without understanding the public's expectations and behavior.

Which of the Following Demonstrates That Policymakers Cannot Know the Outcome