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Classical Model and Keynesian Model
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Classical Model and Keynesian Model
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24. Macroeconomic Schools of Thought / Classical Model and Keynesian Model / Problem 4
Problem 4
In the Keynesian model, what does the blocked highway metaphor suggest about economic intervention?
A
Government intervention is needed to remove economic obstacles.
B
Economic obstacles are permanent unless addressed by policy changes.
C
Economic obstacles are caused by flexible prices and wages.
D
Economic obstacles will clear up on their own over time.
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