What did classical economists assume about the flexibility of prices and wages?

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Classical economists assumed that wages and prices in an economy will be very flexible.  This is one of the major pieces of the foundation of their whole model of a self-correcting economy.  Because wages and prices are flexible, they say, the long-run aggregate supply curve will be vertical.

According to classical economics, prices and wages can and will change rapidly in reaction to any change in aggregate demand.  Let us...

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