The Reason the Short-Run Macro Model Suggests That the Economy

Multiple Choice

The reason the short-run macro model suggests that the economy can operate either above or below its potential while in the long-run classical model the economy operates automatically at full employment is that

A) the short-run macro model is flawed and inaccurate
B) the classical model is flawed and inaccurate
C) the two models measure completely different aspects of the economy
D) in the short run,spending affects output,but not in the long run
E) in the short run the role of government in helping the economy return to equilibrium is not considered