One Key Assumption of the Classical Model Is

question 25

Multiple Choice

One key assumption of the classical model is

• A) government spending plays a major role.
• B) money illusion cannot fool workers.
• C) wages are sticky.
• D) prices are sticky.

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Definitions:

Priority Rule

A principle in law that determines the precedence of claims, rights, or interests in order to resolve conflicts between parties.

Inventory

The total amount of goods and materials held in stock by a business, intended for sale or production purposes.

Ordinary Course

Activities or transactions that are regular, customary, and in keeping with the normal operations of a business or individual’s day-to-day life.

Durable Goods

Consumer goods that have a long life span (over three years) and are used over time, such as cars or appliances.