Author Question: New classical economists believe that the classical model a. with the rational expectations ... (Read 81 times)

khang · **on:** Jun 30, 2018

New classical economists believe that the classical model

a. with the rational expectations assumption added provides a role for activist stabilization policies.
b. is a poor starting point to construct new macroeconomic models.
c. with the rational expectations assumption substituted for the perfect information assumption provides a starting point for constructing useful macroeconomic models.
d. is equivalent to the monetarist model.
e. both c and d.

Question 2

In the postwar era, the federal budget has typically been ________.

A) balanced
B) in surplus
C) in deficit
D) the largest component of Gross Domestic Product