Classical economists held the view that in the economy,
A)demand creates its own supply.
B)unemployment is temporary and is soon eliminated.
C)there is an imbalance between saving and investment.
D)it is difficult for an economy to adjust because wages and prices are inflexible.

Question

Quizplus · Accepted Answer

Classical economists believed that unemployment is temporary and self-correcting due to flexible wages and prices, which allow the economy to return to full employment.

Classical Economists Held the View That in the Economy