Classical model

Classical model is a model of the economy derived from the ideas of the classical, or pre-Keynesian, economists; a model based on the assumptions that wages and prices adjust to clear markets and that monetary policy does not influence real variables. (Cf. Keynesian model.)

Definition=

According to Macroeconomics by Mankiw (7th edition),

Classical model. A model of the economy derived from the ideas of the classical, or pre-Keynesian, economists; a model based on the assumptions that wages and prices adjust to clear markets and that monetary policy does not influence real variables. (Cf. Keynesian model.)