The school of economic thought which argues that through tax reductions, and deregulation, government creates the proper incentives for the private sector to increase aggregate supply is known as the:
a. rational expectations school.
b. neo-Keynesian school.
c. supply-side school.
d. new classical school.
e. classical school.
c
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Government rules and regulations can, at times,
A) higher transactions costs. B) lower transactions costs. C) better management. D) all of these choices.
According to the rational expectations theory,
a. the expected results of government anti cyclical measures are intensified by the actions of businesses and individuals. b. the easy expansion of the money supply by banks eventually leads to excess productive capacity. c. the expected results of government anti cyclical measures are offset by the actions of businesses and individuals. d. the limited expansion of the money supply by banks eventually leads to excess productive capacity.