Question

The classical model uses the assumption that question 45 options:

a.monopoly is widespread in the economy.
b.economic markets are fragile and have no tendency to move towards an equilibrium.
c.interest rates are not flexible.
d.all wages and prices are flexible.

Answer 1

The classical model uses the assumption that all wages and prices are flexible.

In classical economies, prices and wages freely adjust to the ups and downs of demand over time.