According to classical theory, prices and wages are _____, and fiscal policy is _____ to stabilize an economy.

Name: According to classical theory, prices and wages are _____, and fiscal policy is _____ to stabilize an economy.
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According to classical theory, prices and wages are flexible, allowing the economy to adjust to changes automatically. Therefore, classical economists believe fiscal policy is unnecessary for stabilizing the economy, as the market will self-correct.

According to Classical Theory, Prices and Wages Are _____, and Fiscal