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The Keynesian Model Differs from the Classical Model in That

Question 47

Multiple Choice

The Keynesian model differs from the classical model in that


A) people do not have perfect information about the future in the Keynesian model.
B) real wages are not flexible in the Keynesian model.
C) monetary policy affects aggregate demand in the Keynesian model.
D) expectations are crucial in the classical model.
E) all of the above.

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