Classical economists assumed that
A) prices were flexible.
B) individuals did not suffer from money illusion.
C) wages were flexible.
D) all of the above

Question

Quizplus · Accepted Answer

Classical economists believed that prices, wages, and individuals' behavior would be flexible in response to changes in the economy, and they did not believe in the concept of money illusion, where individuals may not understand the true value of their money due to inflation or deflation.

Classical Economists Assumed That