One of the primary objections to the new classical model is that ________.
A)firms could easily get information about price movements and so would not be fooled for very long
B)price is negatively related to quantity demanded,but positively related to quantity supplied
C)business cycles are relatively brief in duration
D)it failed to incorporate rational expectations into its presentation

Question

Quizplus · Accepted Answer

The primary objection to the new classical model is that it assumes firms could easily get information about price movements and so would not be fooled for very long, which critics argue is unrealistic in dynamic and complex markets.

One of the Primary Objections to the New Classical Model