Which of the following did classical economists believe would happen if the economy experienced a downturn?
A) Prices would rise.
B) Interest rates would rise.
C) The economy would self-correct.
D) The government would fix the inefficiencies.

Question

Quizplus · Accepted Answer

Classical economists believed that the economy is self-regulating and would naturally return to full employment without government intervention through adjustments in prices and wages.

Which of the Following Did Classical Economists Believe Would Happen