Question

18. "An economy has a Keynesian property in the short-run and a classical

property in the long-run." how and why?

Answer 1

This statement can be understood as follows: in the short term, more or less everything is clear with economic processes, therefore, in the short term, a Keynesian policy will be necessary, and in the long term, incomprehensible economic processes, because it is impossible to estimate what will happen in 10 years or more. Consequently, in the long term, the economy is regulated according to the classics.