New classical economists believe that

A) wage and price controls are needed to help control inflation.
B) governmental intervention is destabilizing and harmful to the economy.
C) the federal government has abdicated its responsibility to promote a non-inflationary full employment economy.
D) antitrust laws should be toughened in order to restrain inflation.
E) people are irrational.

New Classical Economists

A group of economists who emphasize the importance of rational expectations and market clearing in explaining economic fluctuations.

Governmental Intervention

Actions taken by a government to influence or regulate various aspects of its economy or society, often to correct market failures or promote social welfare.

Wage and Price Controls

Government-imposed limits on the prices that can be charged for goods and services and/or wages that can be paid, typically in an attempt to control inflation.