The Classical Approach to Macroeconomics Assumes That

question 14

Multiple Choice

The classical approach to macroeconomics assumes that

• A)wages, but not prices, adjust quickly to balance quantities supplied and demanded in markets.
• B)wages and prices adjust quickly to balance quantities supplied and demanded in markets.
• C)prices, but not wages, adjust quickly to balance quantities supplied and demanded in markets.
• D)neither wages nor prices adjust quickly to balance quantities supplied and demanded in markets.

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Definitions:

Cohabiting Couples

Partners who live together in a sexual and domestic relationship without being legally married.

Cohabitation Rates

The proportion of individuals living together in a non-marital partnership, often considered an indicator of changing social norms regarding relationships and family life.

Alberta

A province in western Canada, known for its natural beauty, oil and gas industry, and as a center for various cultural and economic activities.

British Columbia

A province in western Canada, known for its natural beauty, including mountains, forests, and the Pacific coastline.