According to Classical models, the level of employment is determined primarily by
A) the level of aggregate demand for goods and services.
B) prices and wages.
C) government taxation.
D) government spending.

Question

Quizplus · Accepted Answer

In Classical models, the level of employment is primarily determined by prices and wages, as these models assume that markets, including labor markets, clear through adjustments in prices and wages.

According to Classical Models, the Level of Employment Is Determined