The law of diminishing marginal utility guarantees that demand curves will have positive slopes

The pre-Keynesian or classical economic theory predicted that in the long-run the economy would experience:

a. long periods of high unemployment. b. rising rates of inflation. c. only temporary periods of high unemployment. d. idle factors of production.

Which of the following economic theories take into account the rational expectations of people in the economy?

a. Traditional Keynesian economic theory b. Monetarist economic theory c. New classical economic theory d. Classical economic theory e. New Keynesian economic theory