The policy ineffectiveness proposition (connected with new classical theory) does not eliminate policymakers ability to reduce unemployment

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“The policy ineffectiveness proposition (connected with new classical theory) does not eliminate policymakers’ ability to reduce unemployment through aggregate demand–

increasing policies, because they can always increase aggregate demand by more than the public expects.” What might be the weak point in this argument?

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Microeconomics

ISBN: 9780357720639

14th Edition

Authors: Roger A. Arnold, Daniel R Arnold, David H Arnold

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