One criticism of the new classical model is that it does not have an adequate explanation for
a. rising prices and output.
b. short-run effects of monetary policy on output.
c. how optimizing individuals form their expectations.
d. the Great Depression.
e. both c and d.
Question 2
In the United States, an official dating of business cycles
a. is executed by the Federal Reserve Bank of New York.
b. originates with the Department of Commerce.
c. was started by the Bureau of Labor Statistics Institute.
d. is performed by the Business Cycle Dating Group of the National Bureau of Economic Research.
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