The major difference between the Keynesian model and the classical theory of employment is that

A) the interest rate will not always equalize savings and investment.
B) not everything produced will necessarily be purchased.
C) saving and investing are done by different people for different reasons.
D) wages and prices are assumed to be flexible downwards.

Keynesian Model

An economic theory proposed by John Maynard Keynes, suggesting that aggregate demand is the primary driving force in the economy, and advocating for government intervention to manage economic fluctuations.

Classical Theory

An economic theory that emphasizes the importance of free markets, competition, and the belief that markets, through the forces of supply and demand, will naturally regulate the economy.

Employment

The condition of having a paid job; the total number of people currently employed in the economy.