The position that wage and price flexibility will bring the economy to the desired level of output is shared by the classical school and the new classical school.

Question

Quizplus · Accepted Answer

Both the classical school and the new classical school of economics believe that the economy is self-regulating and that wage and price flexibility will naturally adjust to bring the economy to its full employment level of output, without the need for government intervention.

The Position That Wage and Price Flexibility Will Bring the Economy