If asked about the basic functioning of the economy,a classical economist would claim that
A) the market tends toward stability and full employment.
B) the market tends toward instability and cyclical unemployment.
C) prices are sticky.
D) the economy needs help in moving back to full employment.
E) the short run is more significant than the long run.

Question

Quizplus · Accepted Answer

Classical economists believe that the market tends toward stability and full employment through the forces of supply and demand. They argue that in the long run, wages and prices will adjust to equilibrium levels, resulting in full employment and economic stability.

If Asked About the Basic Functioning of the Economy,a Classical