The classical school

A) was the dominant school of economic thought until the Great Depression.
B) was the dominant school of economic thought after the Great Depression.
C) believed that the economy was basically unstable.
D) believed wages and prices were rigid downwards.
E) All of the choices are true of the classical school.

Classical School

An economic theory originating in the late 18th century, emphasizing free markets, competition, and the minimal role of government in the economy.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States and leading to significant declines in industrial production, mass unemployment, and deflation.

Economic Thought

The study and ethoses regarding economics and its methodologies, including the insights and theories developed over time by economists.