The ________ perspective tends to view inflation as a cost that offers no offsetting gains in terms of lower unemployment.

Group of answer choices

flexible wage and price

Keynesian

neoclassical

Neoclassical economists have a tendency to put more emphasis on long-term growth than on fighting recession. Why is this the case?

Group of answer choices

The rate of inflation is determined by the upward trend of potential GDP.

Wage stickiness and price are reasonable in the short run.

Government focuses more on cyclical unemployment and recessions.

Because over the long run, recessions end.