Classical Economists Believe That Prices Are ____ and That Recessions

question 57

Multiple Choice

Classical economists believe that prices are ____ and that recessions will be relatively ____.

• A) inflexible; long
• B) inflexible; brief
• C) flexible; brief
• D) flexible; long

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Definitions:

Long-Term

Refers to assets, investments, or obligations that are expected to last or be in place for more than one year.

Interest Expense

The cost incurred by an entity for borrowed funds, usually shown as an expense on the income statement.

Interest-Bearing Note

A debt instrument that pays interest to the holder until maturity.

Note Payable

A written promise to pay a specific amount of money, usually with interest, by a certain date.