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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 2
Problem 2
Which statement best contrasts the classical and Keynesian models regarding market self-correction?
A
The classical model assumes markets will self-correct, while the Keynesian model requires intervention.
B
Neither model assumes markets will self-correct.
C
Both models assume markets will self-correct without intervention.
D
The Keynesian model assumes markets will self-correct, while the classical model requires intervention.
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