2 Answer B. Wages and prices adjust quickly to balance quantity supplied and quantity Demanded in markets.

The classical theory of macroeconomics states that decisions regarding what to produce', how to produce', and for whom to produce' are determined by the market forces of demand and supply. The classical economist believed that in a free economy, resources are fully and optimally utilised. Full employment EQUILIBRIUM is a normal feature of this economy. If at all, there is disequilibrium , it will be short lived and will be corrected by the market forces through the autonomic mechanism i.e price and wages and interest rates are flexible. Interference of government is not required in classical model.

3 

The answer is 600 million. Since oil is an intermediary good, we can ignore this. The final good is gas and it is worth 600 million, which is the total contribution to the country's GDP.