Which of the Following Is Consistent with the Classical Position

question 96

Multiple Choice

Which of the following is consistent with the classical position on wages and prices?

• A) Wages and prices are sticky in the downward direction.
• B) Wages are sticky in the downward direction, but prices are flexible.
• C) Wages and prices are flexible.
• D) Prices are sticky in the downward direction, but wages are flexible.

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Definitions:

Volume Of Activity

A measure of the quantity of work performed or production completed, often influencing costs and revenues in businesses.

Policies And Procedures

Systematic guidelines set by an organization to direct and align its activities and decisions in a consistent manner.

Fixed Cost

Expenses that do not change with the level of production or sales over the short term, such as rent or salaries.

Model

A simplified representation, often mathematical, of a system or process used to analyze behavior, make predictions, or inform decision-making.