Upgrade to access all content for this subject
Which of the following is NOT a key assumption of Classical Economic Theory?
Prices are flexible and quickly adjust in order to clear market imbalances.
The economy’s production of goods and services create exactly enough income to purchase them.
There is a tendency for savings to be equal to investment.
Markets, although they have a tendency to correct imbalances, can take a long time to adjust providing a role for government intervention.