Which of the following is NOT an assumption of the classical system?
A) Pure competition exists.
B) People are motivated by self interest.
C) Wages and prices are inflexible.
D) There is no money illusion.

Question

Quizplus · Accepted Answer

The classical system assumes that wages and prices are flexible, not inflexible. This flexibility allows for the economy to adjust and reach equilibrium efficiently.

Which of the Following Is NOT an Assumption of the Classical