A fundamental feature of nineteenth century classical theory is that

Question

A fundamental feature of nineteenth century classical theory is that

A, A fundamental feature of century classical theory is that saving and investment unequal

B, prices of inputs and outputs usually relatively rigid

C,the federal budget will automatically balance

D, the economy adjusts quickly and automatically to full employment

Answer 1

The fundamental feature is that wages/prices are flexible, thus the free market forces will allow the economy to adjust and return to long-run equliibrium in any environment. The answer is D.