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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 1
Problem 1
What is a key feature of the Keynesian model regarding prices and wages?
A
Prices and wages are sticky and do not adjust quickly to economic changes.
B
Wages are sticky, but prices are flexible.
C
Prices are sticky, but wages are flexible.
D
Prices and wages are flexible and adjust quickly to economic changes.
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