According to classical economists
A) Say's law is not valid.
B) unemployment will not be a serious problem in a market economy.
C) wage levels are always "sticky."
D) demand stimulus is needed to produce full employment.

Question

Quizplus · Accepted Answer

According to classical economists, the market economy will tend towards equilibrium and full employment. They believed that wages and prices are flexible and will adjust to clear markets, thereby ensuring that there is no involuntary unemployment. Therefore, classical economists did not believe that unemployment would be a serious problem in the long run.

According to Classical Economists