Classical economists thought that
A.
flexible wages and prices were the principal causes of recessions.
B.
price, wage, and interest rate flexibility can quickly cure any tendencies for a recession.
C.
the Great Depression confirmed their view of the business cycle.
D.
government policies and spending were needed to keep the economy at full employment.
1 answer
B. price, wage, and interest rate flexibility can quickly cure any tendencies for a recession.