Which of the following is a difference between the theories of John Maynard Keynes and the classical economists?
A)Unlike Keynesian economists,classical economists believed that unemployment was a serious long-term problem.
B)Unlike Keynesian economists,classical economists advocated that the economy was always in equilibrium.
C)Unlike Keynesian economists,classical economists believed that the economy would always settle at full employment.
D)Unlike Keynesian economists,classical economists did not believe that the economy was always in equilibrium.
E)Unlike Keynesian economists,classical economists believed a glut created an unemployment problem for the economy.

Question

Quizplus · Accepted Answer

Classical economists believed that the economy would naturally settle at full employment due to flexible prices and wages, while Keynes argued that the economy could be in equilibrium with unemployment due to sticky prices and wages.

Which of the Following Is a Difference Between the Theories