question archive A primary conclusion of new classical economics is: A) wages and prices are inflexible downward
A primary conclusion of new classical economics is: A) wages and prices are inflexible downward
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A primary conclusion of new classical economics is:
A) wages and prices are inflexible downward.
B) there is no short-run tradeoff between unemployment and inflation.
C) a free market economy can operate at less than full employment for long periods of time.
D) government intervention in the economy will be rendered ineffective by the responses of businesses and households to these policies.
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D) government intervention in the economy will be rendered ineffective by the responses of businesses and households to these policies
Classical economics is generally more strived towards the long-run economy. And in the long run, the economy actually gets self-adjusted. In this situation, any policy or intervention imposed by the government does not reflect any change proposed for the long run. Instead, business firms and household make the changes themselves in a manner which does not get responded due to any policy change.
