Why are Neoclassical economists often called "equilibrium theorists"?
A) Because they believe that government can easily restore the economy to equilibrium.
B) Because they believe the economy will always restore itself to equilibrium.
C) Because they believe the economy is always in equilibrium.
D) Because they believe all problems in the economy are caused by its equilibrium tendencies.

Question

Quizplus · Accepted Answer

Neoclassical economists are often referred to as equilibrium theorists because they believe that markets tend towards equilibrium and that this equilibrium is efficient. They argue that any external interference in the market can only disrupt this equilibrium and make things worse. They believe that free markets will always naturally move towards equilibrium, even in the face of external shocks.

Why Are Neoclassical Economists Often Called "Equilibrium Theorists