Classical
Who is the founder of the Classical theory model?
Adam Smith
Who founded the Keynesian model?
John Keynes
What type of policy does the Classical theory implement?
Monetary Policy
What are the three ranges in the Keynesian model?
Classical range, intermediate range and the keynesian range
What two parts does the Classical model aggregate supply entail?
The short and the long run.
What supply curve represents the economy in the Keynesian model?
The long run.
True or False: In the long run, prices are flexible but wages are fixed.
False. This occurs in the short run.
"This occurs when prices and wages begin to lose flexibility." What range in the Keynesian model of aggregate supply does this occur?
The intermediate range