Which of the Following Assumptions Is Crucial to the Classical

question 5

Multiple Choice

Which of the following assumptions is crucial to the classical macroeconomic model's assertion that the economy has built-in forces that automatically eliminate unemployment and quickly move the economy to its potential level of real GDP?

• A)Profit motive
• B)Rigid wages and prices
• C)Flexible wages and prices
• D)Natural rate of unemployment

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Definitions:

Distal Convoluted Tubule

A portion of the nephron in the kidney involved in the selective reabsorption and secretion, playing a key role in regulating the body's salt and water balance.

ACE Inhibitor

A medication used to treat high blood pressure and heart failure by inhibiting an enzyme involved in the constriction of blood vessels.

High Blood Pressure

A condition characterized by the force of the blood against the walls of the arteries being consistently too high, often leading to health issues like heart disease.

Salt Concentration Gradient

A variation in the concentration of salt across a distance, affecting the movement of substances in biological systems.