Each of the Following Is Consistent with the Classical Theory

question 72

Multiple Choice

Each of the following is consistent with the classical theory EXCEPT

• A)wages and prices are flexible.
• B)the economy is always at full employment.
• C)supply creates its own demand.
• D)laissez-faire.

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Definitions:

Worn-Out Machinery

Worn-Out Machinery refers to equipment that has reached the end of its useful life due to wear and tear, aging, or obsolescence.

Expanding Current Operations

The process of increasing the scale or scope of a company's business activities.

Accrued Interest

The accumulation of interest on a loan or bond since the last payment date but not yet paid out to the lender.

Gain on Sale of Investments

The profit realized from selling investments for more than the purchase price.