Most economists believe that classical macroeconomic theory is a good description of the world
A)in neither the short nor long run.
B)in the short run and in the long run.
C)in the short run, but not in the long run.
D)in the long run, but not in the short run.

Question

Quizplus · Accepted Answer

Classical macroeconomic theory posits that in the long run, an economy will tend towards full employment and equilibrium due to market forces. However, in the short run, there may be fluctuations in output and employment due to factors such as changes in aggregate demand or supply shocks. Therefore, classical macroeconomic theory is generally considered to be more applicable in the long run than in the short run.

Most Economists Believe That Classical Macroeconomic Theory Is a Good