Classical model

From CNM Wiki
Revision as of 17:10, 1 July 2020 by Kainat9 (talk | contribs) (Created page with "Classical model is a model of the economy derived from the ideas of the classical, or pre-Keynesian, economists; a model based on the assumptions that wages and prices adj...")
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

Classical model is a model of the economy derived from the ideas of the classical, or pre-Keynesian, economists; a model based on the assumptions that wages and prices adjust to clear markets and that monetary policy does not influence real variables. (Cf. Keynesian model.)

Definition=

According to Macroeconomics by Mankiw (7th edition),

Classical model. A model of the economy derived from the ideas of the classical, or pre-Keynesian, economists; a model based on the assumptions that wages and prices adjust to clear markets and that monetary policy does not influence real variables. (Cf. Keynesian model.)