What Key Observation Did the Classical Model Attempt to Explain

question 37

Multiple Choice

What key observation did the classical model attempt to explain?

• A) the economy performs well in the short run,but not so well in the long run
• B) business cycles are the most important economic problem
• C) over the short run,the economy performs rather poorly
• D) markets do not clear without government intervention
• E) over the long run,the economy performs rather well

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Definitions:

Neologism

A newly coined word or expression that may be in the process of entering common use.

Avolition

Refers to a decrease in the motivation to initiate and perform self-directed purposeful activities.

Auditory

Pertaining to the sense or organs of hearing, or to the process of perceiving sound.

Visual

Pertaining to the sense of sight or the perception of objects through light signals received and processed by the eyes.