Because markets may not clear for several months or even several years, the classical model
a. is no longer considered valuable by mainstream economists
b. has no value when explaining a situation where excess supply exists
c. is irrelevant to any discussion of a market in which excess demand exists
d. does a better job of explaining short-term fluctuations than long-run growth
e. does a better job of explaining long-run growth than short-run fluctuations
E
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The long run in macroeconomic analysis is a period
A. in which wages and some other prices are sticky. B. in which the capital stock is held constant. C. in which full wage and price flexibility and market adjustment have been achieved. D. greater than 12 months.
Oligopoly can arise from:
a. diseconomies of scale in production. b. limited demand for a product in the market. c. government regulations. d. easy availability of the crucial inputs. e. reduction of trade barriers.