According to the classical model,in the labor market
A)perfect information about the market price by market participants is required.
B)the labor market is always in equilibrium.
C)prices and wages are perfectly flexible.
D)both suppliers and purchasers of labor must know the relevant trading prices.
E)All of the above.

Question

Quizplus · Accepted Answer

The classical model assumes perfect information about market prices, flexible prices and wages, and that both suppliers and purchasers of labor have knowledge of relevant trading prices. It also assumes that labor market is always in equilibrium. Therefore, all of the above options are correct.

According to the Classical Model,in the Labor Market