The total multiplier of government expenditure is
A) zero.
B) between zero and one.
C) one.
D) larger than one.
Question 2
Which of the following statements is (are) correct? Keynesians criticize the new classical theory because
a. the new classical model cannot explain changes in expectations.
b. of the contracting market characterization of the labor market.
c. the rational expectations assumption ascribes an extreme and unrealistic availability of information to market participants.
d. All of the above
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