1)An economic theory uses assumptions to A

1)An economic theory uses assumptions to A. facilitate the economist's job of obscuring simple relationships behind economic variables. B. make things easier by avoiding normative issues. O c. make the complexities of the real world more abstract to focus more sharply upon the issues under examination. OD. make the theory more complex and therefore, more useful.

2)Question 24 Not yet answered Marked out of 1.00 P Flag question According to the classical model, in the long run, wages and prices are perfectly flexible and monetary policy affects neither nominal nor real variables In the short run, however, monetary policy appears to have a potent effect on output and employment because of