A difference between the classical and new classical model is that (A) classical economists assumed that labor suppliers knew the real wage, while the new classical economists assume they form a rational expectation of the real wage (B) classical economists assumed that the money wage was flexible, while the new classical economists assume it was fixed (C) classical economists were non-interventionists on policy questions, while the new classical economists are policy activists (D) labor supply in the classical model is a function of the real wage, while labor supply depends on the money wage in the new classical model

JNU SIS 2018 Question 39: Schools of economic thought and methodology

A difference between the classical and new classical model is that

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Schools of economic thought and methodology has come up 67 times in 5 exams since 2011.

This question is on Keynesian, monetarist and new classical schools, part of Schools of economic thought and methodology in Macroeconomics.

The competing macroeconomic schools and their core claims.

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