If Asked About the Basic Functioning of the Economy,a Classical

question 39

Multiple Choice

If asked about the basic functioning of the economy,a classical economist would claim that

• A) the market tends toward stability and full employment.
• B) the market tends toward instability and cyclical unemployment.
• C) prices are sticky.
• D) the economy needs help in moving back to full employment.
• E) the short run is more significant than the long run.

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Definitions:

Economic Decline

A period where an economy experiences a decrease in its overall output or economic activity.

Middle-Class

A socioeconomic group that falls between the working class and the upper class, typically characterized by moderate income, education, and a certain level of economic security.

Social Mobility

The ability of individuals or families to move within or between social strata in a society, impacting their economic and social position.

Pecking Order

A hierarchy of status seen among members of a group of people or animals, often dictated by power, rank, or social standing.