The classical economists assumed that
A)monopoly was widespread in the economy.
B)government intervention in the economic system was necessary and helpful.
C)wages and prices were inflexible, especially downward.
D)wages and prices were flexible.

Question

Quizplus · Accepted Answer

The classical economists believed in the flexibility of wages and prices to adjust to changes in supply and demand. This is known as the "invisible hand" of the market. They did not believe in the need for government intervention in the economy. They also did not assume that monopoly was widespread in the economy.

The Classical Economists Assumed That