According to the theory of _____, people look at past experiences and gradually adapt their beliefs and behavior as circumstances change

Proponents of the new classical macroeconomics do not believe which of the following?

A) Wages and prices will adjust rapidly in the economy. B) Workers and firms use information contained in Fed policy to form inflation expectations. C) The economy will normally be at its potential level. D) Expansionary monetary policy can be an effective policy tool.

If the law of one price holds for a single good, then absolute PPP measured with price indexes will also hold

Indicate whether the statement is true or false