The classical economists felt that wages and prices were flexible in
A) neither the upward direction nor the downward direction.
B) the upward direction but not in the downward direction.
C) the downward direction but not in the upward direction.
D) both the upward and downward directions.

Question

Quizplus · Accepted Answer

Classical economists believed that wages and prices were flexible in both the upward and downward directions, meaning that they would adjust to changes in supply and demand. This belief was based on the assumption of perfect competition and the idea that markets would eventually reach equilibrium.

The Classical Economists Felt That Wages and Prices Were Flexible