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Is the classical economics position on (a) wages, (b) prices, and (c) interest rates?

A) (a) Flexible, (b) Fixed, (c) Variable
B) (a) Fixed, (b) Variable, (c) Flexible
C) (a) Variable, (b) Flexible, (c) Fixed
D) (a) Fixed, (b) Fixed, (c) Variable

User TeamDman
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1 Answer

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Final answer:

The classical economics position on (a) wages is (a) Flexible, on (b) prices is (b)Fixed, and on (c) interest rates is (c)Variable. The correct option is A.

Step-by-step explanation:

The classical economics position on (a) wages is (a) Flexible. In the long run, wages are believed to adjust to equilibrium levels based on supply and demand forces.

The classical economics position on (b) prices is (b) Fixed. Classical economists believe that prices have a tendency to stay relatively constant in the long run, guided by market forces.

The classical economics position on (c) interest rates is (c) Variable. Classical economists view interest rates as being determined by the interactions of savers and borrowers in the financial market.

User Snex
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