The model of short-run economic fluctuations focuses on
A)the price level and real GDP.
B)productivity and economic growth.
C)the neutrality of money and inflation.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

The model of short-run economic fluctuations, also known as the Keynesian model, focuses on the relationship between the price level and real GDP in the short term. It emphasizes the role of aggregate demand and the importance of government intervention to stabilize the economy during periods of recession or inflation. Productivity and economic growth are more long-term concerns, while the neutrality of money and inflation are more relevant to the classical model of economics.

The Model of Short-Run Economic Fluctuations Focuses on