Assumptions of classical economic theory


Which of the following are not assumptions of classical economic theory?

a. Flexible interest rates allow self-correcting equilibrium of savings and investing.

b. Flexible prices allow self-correcting of shortages and surpluses in product markets.

c. Full employment is not necessarily an attribute of equilibrium.

d. An increase in money leads to an increase in aggregate demand

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Accounting Basics: Assumptions of classical economic theory
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