Classical economists assumed that the economy operates at the level of full employment:
A. Without inflation in the long period.
B. Wages and prices of goods were flexible.
C. Marginal productivity of labour is zero.
D. Competitive market existed in the economy.
Answer:C
Classical economists assumed that the economy operates at the level of full employment:
A. Without inflation in the long period. B. Wages and prices of goods were flexible. C. Marginal productivity of labour is zero. D. Competitive market existed in the economy.