Question

full employment is a normal situation according to ​

Answer 1

Answer:

The classical theory assumes over the long period the existence of full employment without inflation. ... Thus, full employment is regarded as a normal situation and any deviation from this level is something abnormal since competition automatically pushes the economy toward full employment.

Answer 2

Answer:

The classical theory assumes over the long period the existence of full employment without inflation.

Given wage-price flexibility, there are automatic competitive forces in the economic system that tend to maintain full employment, and make the economy produce output at that level in the long run.Thus, full employment is regarded as a normal situation and any deviation from this level is something abnormal since competition automatically pushes the economy toward full employment.

Explanation: