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Classical Model and Keynesian Model
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Problem 10
Classical Model and Keynesian Model
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24. Macroeconomic Schools of Thought / Classical Model and Keynesian Model / Problem 10
Problem 10
In the classical model, what does the busy highway metaphor suggest about economic recessions?
A
Recessions are permanent unless addressed by policy changes.
B
Recessions require government intervention to clear economic obstacles.
C
Recessions will clear up on their own over time without intervention.
D
Recessions are caused by fixed prices and wages.
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