The classical model uses the assumption that: OPTIONS: all wages and prices are flexible. monopoly is widespread in the economy. interest rates are not flexible. economic markets are fragile and have no tendency to move towards an equilibrium.

The classical model uses the assumption that: OPTIONS: all wages and prices are flexible. monopoly is widespread in the economy. interest rates are not flexible. economic markets are fragile and have no tendency to move towards an equilibrium.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter15: Macroeconomic Viewpoints: New Keynesian, Monetarist, And New Classical

Section: Chapter Questions

Problem 10E

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Question

The classical model uses the assumption that:

OPTIONS:

all wages and prices are flexible.

monopoly is widespread in the economy.

interest rates are not flexible.

economic markets are fragile and have no tendency to move towards an equilibrium.

Definition Definition Market structure in which a single company dominates the entire industry. In a monopoly market, there are no close substitutes for the goods and services offered by the monopoly.

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