According to classical macroeconomic theory,
A)the price level is sticky in the short run and it plays only a minor role in the short-run adjustment process.
B)for any given level of output,the interest rate adjusts to balance the supply of,and demand for,money.
C)output is determined by the supplies of capital and labor and the available production technology.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Classical macroeconomic theory posits that output is determined by the supplies of capital and labor and the available production technology, assuming prices are flexible and markets clear.

According to Classical Macroeconomic Theory