Most economists believe that classical macroeconomic theory is a good description of the economy
A)in neither the short nor long run.
B)in the short run and in the long run.
C)in the short run,but not in the long run.
D)in the long run,but not in the short run.

Question

Quizplus · Accepted Answer

Classical macroeconomic theory focuses on the long-run equilibrium of the economy, where prices and wages adjust to fully clear markets and the economy operates at full employment. In the short run, however, there may be deviations from this equilibrium due to various factors such as monetary or fiscal policy, shocks to the economy, or imperfect information. Therefore, classical macroeconomic theory is considered a good description of the economy in the long run, but not necessarily in the short run.

Most Economists Believe That Classical Macroeconomic Theory Is a Good