Which school of economics argued that prices, wages, and rates are flexible and markets tend to clear unless prevented from doing so by government policy?

The school of economics that argued that prices, wages, and rates are flexible and markets tend to clear unless prevented from doing so by government policy is the Classical school of economics.

Here are the steps to arrive at this answer:

1. Identify the key elements of the question: The question is asking about a school of economics that believes in the flexibility of prices, wages, and rates, and the ability of markets to clear without government intervention.

2. Recall the different schools of economics: There are several schools of economics, including but not limited to Keynesian, Monetarist, Austrian, and Classical.

3. Match the characteristics with the school: The belief in flexible prices, wages, and rates and markets' ability to clear without government intervention aligns with the Classical school of economics. Classical economists believe in the self-regulating nature of markets and often advocate for minimal government intervention.

4. Confirm the answer: The Classical school of economics is the one that argued that prices, wages, and rates are flexible and markets tend to clear unless prevented from doing so by government policy.