Based on the Belief That Prices Are Very Flexible,classical Economists

question 148

Multiple Choice

Based on the belief that prices are very flexible,classical economists conclude that

• A) the economy can become stuck at high levels of unemployment for long periods of time.
• B) government intervention in the economy is unnecessary.
• C) the economy will experience wild swings in output and employment.
• D) the best type of economy is centrally planned and run by the state.
• E) government intervention in the economy is very necessary.

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Definitions:

Debited

Denotes an entry on the left side of an account, indicating an increase in assets or expense or a decrease in liabilities or equity.