Classical economists believed that

A) if saving exceeded investment,prices and interest rates would rise as business accumulated unwanted inventories.
B) flexible prices and wages could not restore an economy to full employment if the interest rate were rigid.
C) flexible interest rates,wages,and prices would assure full employment.
D) voluntary unemployment reflected economic inefficiency.
E) all unemployment was involuntary.

Classical Economists

Economic theorists from the 18th and 19th centuries, including figures like Adam Smith, David Ricardo, and John Stuart Mill, who focused on the idea of free markets, self-regulating economies, and the importance of competition.

Saving

The portion of income not spent on current consumption but reserved for future use.

Flexible Prices

A characteristic of markets where prices can change easily and rapidly in response to shifts in supply and demand.