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

Question

Quizplus · Accepted Answer

The classical view of macroeconomics holds that the economy is self-regulating and always at full employment. This means that any temporary disturbances to the economy will be corrected through market mechanisms, such as price adjustments, and the economy will naturally return to full employment in the long run.

The Defining Feature of the Classical View of Macroeconomics Is