The Classical Model Makes Little Distinction Between the Long Run

question 293

Multiple Choice

The classical model makes little distinction between the long run and short run because

• A) the model has not been fully developed yet.
• B) the classical economists knew that we are always operating in the short run.
• C) current changes influence the long run, so it is not possible to plan for the future.
• D) wages and prices adjust so fast that the economy is quickly moving towards the long run.

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Definitions:

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A severe form of anxiety characterized by an intense feeling of fear, dread, or unease, often with physical symptoms, interfering significantly with daily life.

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Relating to the theory of psychology that emphasizes unconscious motivations and conflicts in explaining human behavior.

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A psychiatric state initiated by involvement in or observation of an alarming situation, featuring persistent flashbacks, nightmares, and heightened anxiety.