One assumption of the new classical model is that
A. money wage rates are rigid.
B. prices are ʺstickyʺ upward.
C. people make rational expectations about aggregate demand.
D. markets are not purely competitive.
Answer:C
One assumption of the new classical model is that
A. money wage rates are rigid. B. prices are ʺstickyʺ upward. C. people make rational expectations about aggregate demand. D. markets are not purely competitive.