Which of the following is NOT an assumption of the classical model?
A)Pure competition exists.
B)Wages and prices are flexible.
C)Government spending is necessary to achieve economic stability.
D)People are motivated by self-interest.

Question

Quizplus · Accepted Answer

The classical model is based on the assumption that the economy is self-regulating and does not require government intervention to achieve economic stability.

Which of the Following Is NOT an Assumption of the Classical