question archive a) Explain how Friedmanian approach is different from the New Classical theory? b) Show how the Rational Expectations Model of the New Classical Economists proves the irrelevance of economic policy to ensure economic stability
a) Explain how Friedmanian approach is different from the New Classical theory? b) Show how the Rational Expectations Model of the New Classical Economists proves the irrelevance of economic policy to ensure economic stability
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a) Explain how Friedmanian approach is different from the New Classical theory?
b) Show how the Rational Expectations Model of the New Classical Economists proves the irrelevance of economic policy to ensure economic stability.
c) Suppose wages and prices are flexible, people form their expectations rationally, and they anticipate policy incorrectly. What happens?
