The primary conclusion of the classical school is:
A) businesses do not change prices once they are set.
B) a free market economy will automatically operate at full employment.
C) a free market economy can operate at less than full employment for long periods of time.
D) there is no relationship between the amount saved and the amount invested in an economy.

Question

Quizplus · Accepted Answer

The classical school of economics posits that a free market economy, without any intervention, will naturally adjust to achieve full employment through the mechanisms of supply and demand. This belief is rooted in the idea that prices, wages, and interest rates are flexible and will adjust to correct any imbalances in the economy.

The Primary Conclusion of the Classical School Is