Would you agree (this is the impression I get from my book) that they think that since wages and prices are flexible and people form expectations rationally, only unanticipated changes in the price level will affect real GDP and the unemployment rate.
What do new classical economists believe?credit check
The distinction between monetarists, classical, and Keynesian economists have become blurred. Most economists have a model in their head that has all elements of these theories. Some economists, however, beleive that productivity shocks (sectoral shifts) are the most important instigator of business cycles, while others believe that losses in business and consumer confidence are the more important. I don%26#039;t think that people think that monetary policy surprises are very important anymore.
No comments:
Post a Comment