The classical model does a poor job of explaining the __________ because it assumes that the __________ always clears.

Name: The classical model does a poor job of explaining the __________ because it assumes that the __________ always clears.
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Question

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The classical model assumes that markets, including the labor market, always clear, meaning supply equals demand. However, in the short run, this assumption often does not hold true, leading to unemployment and other market inefficiencies.

The Classical Model Does a Poor Job of Explaining the __________