The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?
Correct answer: C. short-term long run
- A. long run, short run
- B. flexible imperfect markets
- C. short-term long run
- D. long run, imperfect markets
Explanation
Keynesian analysis emphasizes short-run fluctuations when wages and prices may be rigid, while the classical model is mainly a long-run framework with flexible prices and wages. Option c expresses this short-run versus long-run distinction, although its punctuation is imperfect.
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