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      Question

      Which of the following is NOT a postulate of the

      Classical Model of full-employment equilibrium?
      A Wage-Price flexibility Correct Answer Incorrect Answer
      B Perfect information about the market Correct Answer Incorrect Answer
      C Consumption and saving functions depend on income Correct Answer Incorrect Answer
      D The price level moves proportionately with the quantity of money Correct Answer Incorrect Answer

      Solution

      Consumption and saving functions depend on income is NOT a postulate of Classical Model of full-employment.

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