Keynesians disagree with the new classical model because
a. people are often irrational.
b. wages are often negotiated through contracts, not auctions.
c. people do not form expectations.
d. wages are set to clear auction markets in both the short run and long run.
e. all of the above
B
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Monopolistic competition is characterized by many buyers and sellers, product differentiation, and barriers to entry
a. True b. False Indicate whether the statement is true or false
The demand curve for the product of a perfectly competitive firm's demand curve indicates that if the firm
A) lowers its price, it can sell more. B) accepts the market-set price, the number of units the firm can sell is limited. C) raises its price, sales will fall to zero. D) changes its price, the quantity demanded will change in the opposite direction.