The flexible-price assumption means that
A) prices and wages don't change very quickly in response to excess demand or supply.
B) prices and wages are flexible enough for markets to clear.
C) prices are flexible enough for markets to clear but wages are not.
D) output will adjust in response to excess demand or supply.
Correct Answer:
Verified
Q2: The flexible-price assumption means most importantly
A) that
Q3: Each of the following is a key
Q4: Each of the following is a key
Q5: Each of the following is a key
Q6: Each of the following is a key
Q7: Each of the following is a key
Q8: Two sets of factors determine the levels
Q9: The Classical assumption that prices adjust rapidly
Q10: The Classical assumptions of the macroeconomy include
Q11: The Classical assumptions of the macroeconomy include
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