The school of thought that emphasizes the natural tendency for an economy to move toward equilibrium full employment is known as the:
A) Keynesian school.
B) supply-side school.
C) rational expectations school.
D) classical school.

Question

Quizplus · Accepted Answer

The classical school of thought emphasizes that economies have a natural tendency to move towards full employment equilibrium without government intervention. They believe that supply and demand will balance out in the long-run, and that any imbalances in the short-run will be self-correcting.

The School of Thought That Emphasizes the Natural Tendency for an Economy