The classical school assumes that:
A) supply creates its own demand, wage and prices are flexible, and savings equal investment.
B) supply creates its own demand, wage and prices are inflexible, and savings equal investment.
C) supply does not create its own demand, wage and prices are flexible, and savings do not necessarily equal investment.
D) supply does not create its own demand, wage and prices are inflexible, and savings do not necessarily equal investment.

Question

Quizplus · Accepted Answer

The classical school of economics posits that supply creates its own demand (Say's Law), wages and prices are flexible, and savings equal investment, facilitating economic equilibrium.

The Classical School Assumes That