Based on the Belief That Prices Are Very Flexible,classical Economists

Multiple Choice

Based on the belief that prices are very flexible,classical economists conclude that

A) the economy can become stuck at high levels of unemployment for long periods of time.
B) government intervention in the economy is unnecessary.
C) the economy will experience wild swings in output and employment.
D) the best type of economy is centrally planned and run by the state.
E) government intervention in the economy is very necessary.