The classical model is a model in which
A)governmental policies are needed to ensure full employment.
B)wages and prices are perfectly flexible.
C)the public has perfect information.
D)None of the above
E)b and c

Question

Quizplus · Accepted Answer

The classical model assumes that wages and prices are perfectly flexible (B) and that the public has perfect information (C), allowing the economy to adjust to achieve full employment without the need for government intervention.

The Classical Model Is a Model in Which