Because Markets May Not Clear for Several Months or Even

question 55

Multiple Choice

Because markets may not clear for several months or even several years,the classical model

• A) is no longer considered valuable by mainstream economists
• B) has no value when explaining a situation where excess supply exists
• C) is irrelevant to any discussion of a market in which excess demand exists
• D) does a better job of explaining short-term fluctuations than long-run growth
• E) does a better job of explaining long-run growth than short-run fluctuations

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Definitions:

Infant Memory

The ability of babies to remember and recognize stimuli and experiences from their early life.

Prenatally

A term that refers to the period or processes occurring before birth.

Typical 2-Month-Old

A developmental reference for infants around two months of age, who often show progress in smiling, cooing, and increased alertness.

Imitation Reflex

An innate reflex observed in infants where they mimic gestures or facial expressions, playing a role in learning and social interaction.