Refer to the information provided in Figure 17.2 below to answer the questions that follow. Figure 17.2
-Refer to Figure 17.2. According to ________ economists, under rational expectations an expected decrease in government spending would not change AD or AS.
A) Keynesian
B) the new classical
C) monetarist
D) none of the above

Question

Refer to the information provided in Figure 17.2 below to answer the questions that follow.  Figure 17.2
-Refer to Figure 17.2. According to ________ economists, under rational expectations an expected decrease in government spending would not change AD or AS.
A) Keynesian 
B) the new classical 
C) monetarist 
D) none of the above

Quizplus · Accepted Answer

According to the information provided in Figure 17.2, the concept of rational expectations is associated with the new classical school of thought.

Refer to the Information Provided in Figure 17