The economic theory based on an analysis of individual maximizing choices is called
A) monetarism.
B) new classical economics.
C) Keynesian economics.
D) business cycle theory.

Question

Quizplus · Accepted Answer

New classical economics is the economic theory based on an analysis of individual maximizing choices, which emphasizes the importance of rational expectations and the efficiency of markets in achieving macroeconomic stability. Monetarism focuses on the role of money supply in economic growth and inflation, while Keynesian economics emphasizes the role of government intervention in stabilizing the economy during recessions. Business cycle theory focuses on fluctuations in the economy over time, but does not necessarily center on individual maximizing choices.

The Economic Theory Based on an Analysis of Individual Maximizing