Which of the following economic statements would a classical economist tend to support?
A) Savings is crucial to economic growth because it leads to investment in productive capital.
B) Government intervention is often necessary to stimulate or moderate economic performance.
C) Aggregate demand is the most important side of the economy.
D) Savings is a drain on aggregate demand and can reduce economic growth.
E) The short run is far more important than the long run.

Question

Quizplus · Accepted Answer

Classical economists believe in the importance of savings and investment in promoting long-term economic growth. They believe that savings lead to investment in productive capital, which in turn increases productivity and output.

Which of the Following Economic Statements Would a Classical Economist