All of the following are assumptions of the classical model EXCEPT
A) inflexible wages.
B) absence of money illusion.
C) pure competition.
D) self-interest of economic actors.

Question

Quizplus · Accepted Answer

The classical model assumes flexible wages, not inflexible wages. It posits that wages adjust to maintain full employment. Other assumptions like absence of money illusion, pure competition, and self-interest are consistent with the classical model.

All of the Following Are Assumptions of the Classical Model