A key difference in Keynes's perspective compared to the classical view is that Keynes:
A) focused on the short run.
B) believed that prices were flexible.
C) believed that unemployment would not be persistent enough to be a problem.
D) believed that the supply side of the economy was the main determinant of current output.

Question

Quizplus · Accepted Answer

Keynes focused on the short run, emphasizing that in the short term, markets do not always clear, leading to unemployment and idle resources, which contrasts with the classical view that markets always clear through price adjustments.

A Key Difference in Keynes's Perspective Compared to the Classical