In the Classical Model,flexible Prices and Wages Serve to

question 125

Multiple Choice

In the classical model,flexible prices and wages serve to

• A)self-correct the economy guaranteeing a constant price level and a constant level of output.
• B)self-correct the economy above to the natural rate of unemployment,and constant price level.
• C)ensure that stabilization policy is not required on the part of fiscal authorities.
• D)none of the above

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Definitions:

Puritans

A group of English Protestants in the 16th and 17th centuries who sought to purify the Church of England of Roman Catholic practices.

Church Of England

The primary state church in England, also known as the Anglican Church, characterized by its middle path between Roman Catholicism and Protestant Reformation traditions.

John Winthrop

A leading figure in founding the Massachusetts Bay Colony, one of the early English settlements in North America, known for his vision of the colony as a "city upon a hill."