Practice mode Aggregate Supply, Unemployment And Inflation

People who hold the classical view of the labour market are likely to believe what about policy?

Correct answer C. Neither monetary nor fiscal policy will have an effect on output and employment

Explanation

If wages adjust quickly and output is always at potential, demand policies only change prices, so neither monetary nor fiscal policy affects output and employment.

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Answer checked 11 October 2026 How we write and check questions

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People who hold the classical view of the labour market are likely to believe what about policy?

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People who hold the classical view of the labour market are likely to believe what about policy?

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