Which of the Following Best Describes the Classical and the Keynesian

question 101

Multiple Choice

Which of the following best describes the classical and the Keynesian views on the monetary neutrality?

• A)Classical economists believe that money is neutral,but Keynesians do not.
• B)Both classical and Keynesian economists believe in monetary neutrality,but they differ in the speed of price adjustment.
• C)Classical economists believe in slow adjustment of prices,but Keynesians argue that price adjustment does not take long.
• D)Keynesians believe that money affects employment and output in short run and long run,but classical economists argue that money is neutral only in the long run.

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