Which of the following models has as its central idea that ...

[lbcchick]

Which of the following models has as its central idea that workers and firms have rational expectations?
 
  A) the new classical model B) the monetarist model
  C) the real business cycle model D) the new Keynesian model

Question 2

The new Keynesians emphasize the importance of
 
  A) rational expectations. B) sticky wages and prices.
  C) real causes of the business cycle. D) the monetary growth rule.

[kusterl]

Answer to Question 1

A

Answer to Question 2

B