30 Based on the belief that prices are fully flexible, classical economists conclude thata) spending, or aggregate demand, is the fundamental factor in the economy.b) the economy will never be in equilibrium.Oc) government intervention in the economy is essential to maintain fullemployment.O d) unemployment will tend to persist over time.O e) the economy is self-correcting and does not need government intervention.

According to the classical economist, market is a self-correcting because wages and prices are…

Based on the belief that prices are fully flexible, classical economists conclude that a) spending, or aggregate demand, is the fundamental factor in the economy. b) the economy will never be in equilibrium. c) government intervention in the economy is essential to maintain full employment. d) unemployment will tend to persist over time. O e) the economy is self-correcting and does not need government intervention.

Based on the belief that prices are fully flexible, classical economists conclude that a) spending, or aggregate demand, is the fundamental factor in the economy. b) the economy will never be in equilibrium. c) government intervention in the economy is essential to maintain full employment. d) unemployment will tend to persist over time. O e) the economy is self-correcting and does not need government intervention.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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