Question

A basic belief of Classical Economists is that

the economy is unstable in the long-run.
prices and wages are "sticky."
government intervention is needed to control problems in the economy.
prices and wages are self-correcting.
the economy may operate at less than full employment.

Answer 1

A basic belief of Classical Economists is that prices and wages are self-correcting.

Therefore, the best answer is C. prices and wages are self-correcting.