According to the classical economists, the economy:
A) requires fine- tuning to reach full employment.
B) will never be at full employment.
C) can never deviate from full employment.
D) is self- correcting.

Question

Quizplus · Accepted Answer

Classical economists believe that the economy is self-correcting and will naturally return to full employment in the long run. They argue that if there is unemployment, it will eventually lead to lower wages and prices, making it more attractive for businesses to hire workers and increasing demand for goods and services, ultimately leading to full employment. Therefore, the economy can correct itself without the need for government intervention.

According to the Classical Economists, the Economy