Classical model (古典模型)

Classical model (古典模型 gǔ diǎn mó xíng) refers to an economic model assuming that prices are perfectly flexible, which adjust to different demand levels and bring the market to the market-clearing level. The long-run supply curve is thus inelastic, and the employment tends to stabilize at full employment level. Also, the market is self-correcting to keep running efficiently and there is little need for government intervention. Also see: Keynesian model.

Part 1: Breakdown of Words

  • “Classical” (古典 gǔ diǎn) as in classical music (古典音乐 gǔ diǎn yīn yuè).
    • ” (gǔ) as in “ancient times” (古代 gǔ dài), “antique” (古董 gǔ dǒng), or “weird” (古怪 gǔ guài).
    • ” (diǎn) as in “typical” (典型 diǎn xíng), “dictionary” (字典 zì diǎn), or “ceremony” (典故 diǎn gù).
  • Model (模型 mó xíng) as in “mathematical model” (数学模型 shù xué mó xíng). One other example is “model aircraft” (模型飞机 mó xíng fēi jī), which is different from the “abstract” model in “classical model”. 
    • ” (mó) as in “module” (模块 mó kuài), “mode” (模式 mó shì), or “mold” (模子 mú zi).
    • ” (xíng) as in “type” (型号 xíng hào), or “typical” (典型 diǎn xíng).

Part 2: Example

  1. New classical model (新兴古典模型 xīn xīng gǔ diǎn mó xíng). While “neoclassical model” is “新古典模型” (xīn gǔ diǎn mó xíng).
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