1. Economic models that assume that wages and prices adjust freely to changes in demand and supply are known as __________ models. 2. At full employment, there are only frictional and __________...

1. Economic models that assume that wages and prices adjust freely to changes in demand and supply are known as __________ models.

2. At full employment, there are only frictional and __________ unemployment.

3. According to classical economists, an economy can never deviate from full employment. __________ (True/False)

4. Briefly discuss the classical view of the labor market. Specifically, to what extent can unemployment occur based on the classical view?