Consider the following statements regarding the Classical approach to income and employment determination:
A. In the Classical model, money is neutral in the long run.
B. Wage and price flexibility ensure full employment.
C. Saving is a positive function of income.
D. Interest rate adjusts to equilibrate saving and investment.
Which of the above statements are correct?
1
A, B and C
2
B, C and D
3
A, B, C and D
4
A, C and D