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Classical Economists Believe That Prices Are Completely Flexible,from Which They

Question 99

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Classical economists believe that prices are completely flexible,from which they conclude that the


A) economy can become stuck at high levels of unemployment for long periods of time.
B) economy is self-correcting in response to shocks.
C) government will need to intervene in the economy frequently.
D) best type of economy is centrally planned and run by the state.
E) economy will experience wild swings in output and employment.

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