Neoclassical economic models assume that markets are always in equilibrium.Question 11Answera.Trueb.False
Question
Neoclassical economic models assume that markets are always in equilibrium.Question 11Answera.Trueb.False
Solution
a. True
Neoclassical economic models do assume that markets are always in equilibrium. This is based on the belief that consumers and firms make decisions that will provide them with the greatest benefit, and that everyone has perfect information. This leads to a balance of supply and demand.
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