With respect to the demand side,the classical model excludes
A)exogenous changes in investment
B)exogenous changes in government spending.
C)exogenous changes in taxes.
D)exogenous changes in money demand.
E)All of the above

Question

Quizplus · Accepted Answer

The classical model, focusing on long-term economic outcomes, typically assumes that markets, including the labor market, clear through price and wage adjustments. It often excludes or minimizes the impact of exogenous changes in investment, government spending, taxes, and money demand on the demand side, as it assumes the economy naturally returns to a state of equilibrium without the need for external intervention.

With Respect to the Demand Side,the Classical Model Excludes