One of the Necessary Conditions for the Classical Model to Be

question 63

Multiple Choice

One of the necessary conditions for the classical model to be true is that

• A) wages and prices are fully flexible.
• B) wages and prices are partly flexible.
• C) wages and prices will not change.
• D) wages were flexible and prices are fixed.

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Definitions:

Global Warming

The long-term rise in the average temperature of the Earth’s climate system, largely attributed to human activities such as burning fossil fuels and deforestation.

Kyoto Treaty

An international agreement aimed at reducing carbon dioxide emissions and the presence of other greenhouse gases to combat global warming.

Industrial Pollution

The release of harmful substances into the environment as a result of manufacturing or processing activities.

Cap And Trade

An environmental policy tool that sets a limit on emissions and allows companies to buy and sell permits to stay within those emission limits.