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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Definitions:

Heredity

The transmission of physical or mental traits from parents to their offspring through genetics.

Behaviour

The actions or reactions of an individual, usually in relation to the environment, which can be observed and measured from an objective standpoint.

Study Breaks

Short periods of rest taken during intense study sessions to improve focus and maintain performance over time.

Study Habits

Regular practices or routines that enhance the effectiveness and efficiency of learning or academic performance.