Which of the following groups believes that people will realize what the government is attempting to do and take action to offset government policy?
A)Marxists.
B)New classical economists.
C)Supply-siders.
D)Modern Keynesians.

Question

Quizplus · Accepted Answer

New classical economists believe in the concept of rational expectations, which suggests that individuals and businesses will use all available information to predict future government policy and take actions that can offset the intended effects of those policies. This contrasts with other economic schools of thought that might not emphasize rational expectations to the same extent.

Which of the Following Groups Believes That People Will Realize