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Economics

Q. Important points about the classic model?

The most important points about the classic model are as following:

Monetary and fiscal policy can't affect the GDP or unemployment in classical model.
In the classical model can no nominal variables affect a real variable. Price level that is a nominal variable, for illustration, does not affect consumption, which is a real variable. It is called classic dichotomy.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9577562

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