Which of the following economic statements would a classical economist tend to support?
A) The short run deserves more focus than the long run.
B) The market tends toward stability and full employment.
C) Savings is a drain on aggregate demand and can reduce economic growth.
D) Government intervention is often necessary to stimulate or moderate economic performance.
E) Prices tend to be rigid and inflexible.

Question

Quizplus · Accepted Answer

Classical economists believe in the self-regulating nature of the market, where the market tends toward stability and full employment through the laws of supply and demand. They do not believe that government intervention is necessary or beneficial in the long run.

Which of the Following Economic Statements Would a Classical Economist