Classical economists believed
I. there could be temporary periods of unemployment.
II. emphasis should be placed on the long run, and in the long run all would be set right because of the smooth functioning of the price system.
III. the Great Depression would be a short-run aberration.
A) I only
B) I and II only
C) II only
D) I, II, and III

Question

Classical economists believed 
I. there could be temporary periods of unemployment.
II. emphasis should be placed on the long run, and in the long run all would be set right because of the smooth functioning of the price system.
III. the Great Depression would be a short-run aberration.
A) I only
B) I and II only
C) II only
D) I, II, and III

Quizplus · Accepted Answer

Classical economists believed in the self-correcting nature of the economy, emphasizing the long run where the price system would restore full employment. They viewed periods like the Great Depression as temporary deviations.

Classical Economists Believed