The key difference between classical and Keynesian macroeconomists is their differing beliefs about
A)the slope of the aggregate demand curve.
B)the speed at which prices adjust.
C)the natural rate of unemployment.
D)the full-employment level of output.

Question

Quizplus · Accepted Answer

Keynesian economists believe that prices and wages adjust slowly, leading to periods of unemployment and underutilized resources, while classical economists assume that prices and wages adjust quickly to restore full employment.

The Key Difference Between Classical and Keynesian Macroeconomists Is Their