Classical economists did NOT believe that:
A) there could be temporary periods of unemployment.
B) emphasis should be on the long run, and in the long run all would be set right because of the smooth functioning of the price system.
C) the Great Depression would be a short-run aberration.
D) monetary policy could tame the business cycle.

Question

Quizplus · Accepted Answer

Classical economists did not believe that monetary policy could tame the business cycle. They believed that the economy would naturally self-correct in the long run through the smooth functioning of the price system.

Classical Economists Did NOT Believe That