A Key Difference Between the Classical Perspective and the Keynesian

question 40

Multiple Choice

A key difference between the classical perspective and the Keynesian aggregate expenditure model is that the classical perspective believes that ______ and the Keynesian perspective does not.

• A) the short run is the time period that matters
• B) countercyclical policies are needed
• C) the economy self-corrects
• D) prices are not flexible

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Definitions:

Submarine Canyons

Deep, steep-sided valleys cut into the seabed of the continental slope, often extending well out into the ocean floor.

Continental Slope

The steep slope where the continental shelf drops down to the deep ocean floor.

Continents Position

Refers to the geographical location of the Earth's continents, which can change over geological time due to the process of continental drift.

Ocean Basins

Large depressions on the Earth's surface that are filled with ocean water, forming the basic divisions of the world's oceans.