Which of the following statements about the classical model of the economy is FALSE?
A) Individuals pursue the public interest, not their own self-interest.
B) The economy will always move toward, or be at, full employment.
C) Savings and investment will always be equal.
D) Wages and prices are flexible.
Question 2
The aggregate supply curve shows
A) the total of all planned production for an economy.
B) that real GDP can only increase when the price level increases.
C) what an economy can produce if resource prices are constant.
D) the various quantities of goods consumers will purchase.
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