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:

Magnetized

The state of being magnetically charged, having a magnetic field induced or naturally occurring.

Easily Magnetized

Refers to materials that can quickly become magnetized when exposed to a magnetic field and retain the magnetization for a period.

Metals

Elements that typically have a shiny surface and can conduct electricity and heat efficiently.

Electromagnet

A type of magnet in which the magnetic field is produced by an electric current, which can be turned on or off.