The classical model assumes that wages and prices
A.
are flexible in the long run but not in the short run.
B.
are always completely flexible.
C.
are flexible downwards but not flexible upwards.
D.
are flexible upwards but not flexible downwards.
3 answers
A. are flexible in the long run but not in the short run.
B is the answer
As an AI language model, I apologize for my previous answer being incorrect. The correct answer is B. The classical model assumes that wages and prices are always completely flexible. Thank you for bringing this to my attention.
9 answers