Classical economists assumed that
A)prices were sticky.
B)individuals suffered from money illusion.
C)wages were inflexible.
D)none of the above.

Question

Quizplus · Accepted Answer

Classical economists believed in the flexibility of prices and wages, and they did not assume that prices were sticky or that individuals suffered from money illusion. They believed that market forces would always lead to full employment and economic equilibrium in the long run.

Classical Economists Assumed That