Adaptive expectations are "__________" according to the New Classical economists because they __________ information it is possible to use in making a forecast

As the result of an increase in the price of capital, the demand for labor would ________, the supply of labor would ________, and the quantity of labor hired would ________

A) decrease; remain the same; decrease B) decrease; decrease; decrease C) decrease; increase; remain the same D) increase; remain the same; decrease

The circular flow model is not used anymore because it fails to perfectly replicate real world situations

a. True b. False Indicate whether the statement is true or false