Each of the following is consistent with the classical theory EXCEPT

A) wages and prices are flexible.
B) the economy is always at full employment.
C) supply creates its own demand.
D) laissez-faire.

Classical Theory

in economics, refers to a school of thought that emphasizes free markets, the role of competition, and the minimal intervention of government in the economy, foundational to later economic theories.

Wages And Prices

The relationship and dynamics between the compensation paid to labor and the cost of goods and services in an economy.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically reflected by the absence of cyclical unemployment.