The classical model does a good job of explaining the __________ while doing poor a job of explaining the __________.
A) short run;long run
B) business cycle;long run
C) short run;business cycle
D) unemployment rate;interest rates
E) long run;short run

Question

Quizplus · Accepted Answer

The classical model is effective in explaining long-run economic phenomena, such as growth and full employment, but it does not adequately address short-run fluctuations like those seen in the business cycle.

The Classical Model Does a Good Job of Explaining the __________