Classical model
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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.)
