One of the most important views expressed by classical macroeconomists was that: A. Wages and prices are inflexible B. Wages and prices are always rising C. Demand creates its own supply D. Supply creates its own demand

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Matilda Vang

24 July, 02:09

One of the most important views expressed by classical macroeconomists was that: A. Wages and prices are inflexible B. Wages and prices are always rising C. Demand creates its own supply D. Supply creates its own demand

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Zaire Kirk · Answer 1

Answer: Option A

Explanation: Macroeconomics refers to that branch of economics which studied different aspects of the economy as whole. The domain of macroeconomics lies with factors like unemployment, GDP or inflation etc.

The classic theory of macroeconomics states that every economy has in built forces that keeps constantly working themselves leading to abolition of unemployment. These forces further leads economy to work on its potential level which results in continuous increase in price and wages.