Question

An important difference between the Classical Model and the Keynesian Model is that
Part 2
A.
prices adjust to bring about equilibrium in the Classical Model and output adjusts to bring about an equilibrium in the Keynesian Model.
B.
the equilibrium level of real GDP is​ demand-determined in the Classical Model and is​ supply-determined in the Keynesian Model.
C.
the Classical Model did not account for foreign trade and the Keynesian Model did account for foreign trade.
D.
the Classical Model did not incorporate government taxes and spending and the Keynesian Model did.

Answer 1

wrong answer. It is reversed. Aggregate supply plays a major role in the Classical model while aggregate demand is emphasized in the Keynesian model.

Answer 2

The Keynesian Model was supported empirically by data from the decade of the
Part 4
A.
1920s.
B.
1940s.
C.
1970s.
D.
1930s.

Answer 3

B. the equilibrium level of real GDP is​ demand-determined in the Classical Model and is​ supply-determined in the Keynesian Model.

Answer 4

You are correct, I apologize for my mistake. The correct answer is:

A. prices adjust to bring about equilibrium in the Classical Model and output adjusts to bring about an equilibrium in the Keynesian Model.

Answer 5

D. 1930s.