Question

The Classical Theory is based on the assumption that an economy has ______________ or, if nudged away, quickly returns to that condition.

Answer 1

Answer:

c. full employment

Explanation:

The classical theory refers to a theory in which there is an existence of the full employment. The unemployment would be arise by including the legislation of the trade union and the legislation of the minimum wages in the market system i.e. free based.

Therefore according to the given situation, the option c is the correct and the same is to be considered