Which of the following is NOT an assumption of the classical model?
A) Government intervention is necessary for economic stability.
B) No one buyer or seller of a good or service can affect the price of the good or service.
C) People are motivated by self-interest.
D) People are not fooled by the money illusion.

Question

Quizplus · Accepted Answer

The classical model assumes that the market is self-regulating and that government intervention is not necessary for economic stability. Therefore, option A, which assumes the opposite, is not an assumption of the classical model.

Which of the Following Is NOT an Assumption of the Classical