The defining feature of the classical view of macroeconomics is that the economy is
A)rarely at full employment.
B)driven by expectations called "animal spirits."
C)self-regulating and always at full employment.
D)constantly bombarded by shocks that arise from the uneven pace of technological change.
E)the most significant influence on aggregate demand is expectations.

Question

Quizplus · Accepted Answer

The classical view of macroeconomics believes that the economy is self-regulating and always at full employment. This means that the economy will always revert back to full employment on its own, without the need for government intervention.

The other answer choices are incorrect: 
A) Rarely at full employment goes against the classical view. 
B) Animal spirits are a concept introduced by Keynesian economics, not the classical view. 
D) Constant bombardment by shocks goes against the idea of self-regulation. 
E) Expectations are important in Keynesian economics, but not the defining feature of the classical view.

The Defining Feature of the Classical View of Macroeconomics Is