The Main Difference Between the Keynesian and Classical Models Is

Multiple Choice

The main difference between the Keynesian and Classical models is that

A) the Keynesian model assumes wages are rigid in the short run,but the Classical model assumes economic agents experience price misperception.
B) the Classical model assumes expectations are rational,but the Keynesian model assumes economic agents do not have rational expectations.
C) the Keynesian model suggests that anticipated changes in policies have real effects,but the Classical model suggests that only unanticipated changes in policies have real effects.
D) the aggregate supply curve is upward sloping in the Keynesian model but vertical in the Classical model.