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Which of the Following Statements Best Characterizes the Classical View

Question 53

Multiple Choice

Which of the following statements best characterizes the Classical view of business cycles?


A) Fluctuations in business activity occur in regular and predictable patterns.
B) Fluctuations in business activity are to be expected and should be accepted.
C) Business cycles are symptoms of underlying problems and should be addressed by macroeconomic policy.
D) The appropriate macroeconomic policy can eliminate fluctuations in business activity.

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