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Questions › UGC-NET › UGC-NET 2024 › Q87
2 marksMacroeconomics › Business cycles and rational expectations › New classical economics and policy ineffectivenessHardabout 2 min

UGC-NET 2024 Question 87: Business cycles and rational expectations

In the New Classical Macro Model without unanticipated shock, we may have -
A. Voluntary unemployment
B. Involuntary unemployment
C. Disguised unemployment
D. Cyclical unemployment
E. Natural rate of unemployment Choose the correct answer from the options given below:

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Answer and worked solution

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Business cycles and rational expectations has come up 21 times in 5 exams since 2010.

What this question tests

This question is on New classical economics and policy ineffectiveness, part of Business cycles and rational expectations in Macroeconomics.

Why anticipated policy may have no effect on output.

TestStop has 5 past-paper questions on this subtopic.

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