According to the classical view,if consumer demand slowed down,
A)Prices would decrease,and the economy would return to its long-term growth trend.
B)Prices would increase,and the economy would return to its long-term growth trend.
C)Wages would increase,and the economy would return to its long-term growth trend.
D)Investment and government demand would increase,and the economy would return to its long-term growth trend.

Question

Quizplus · Accepted Answer

According to the classical view, if consumer demand slowed down, prices would decrease because of the decrease in demand. This would lead to an increase in consumption as the products become more affordable, leading to a return to the long-term growth trend.

According to the Classical View,if Consumer Demand Slowed Down