A critical assumption in the classical model is that markets are always clear

Explain why the money supply does NOT change when one individual writes a check to another

What will be an ideal response?

A perfectly competitive market is a market that meets the conditions of

A. few buyers and sellers, all firms selling identical products, and no barriers to new firms entering the market B. many buyers and sellers, all firms selling differentiated products, and no barriers to new firms entering the market C. many buyers and sellers, all firms selling identical products, and significant barriers to new firms entering the market D. many buyers and sellers, all firms selling identical products, and no barriers to new firms entering the market