Given the Assumptions of the Classical Model

question 140

Multiple Choice

Given the assumptions of the classical model

• A) the economy will often experience recessions and expansions.
• B) expansion will be the normal condition, but recessions will often be severe and require government intervention.
• C) the macroeconomy is erratic, and problems will often be increased over time.
• D) the market is a self-correcting mechanism.

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