The classical macroeconomists believed that fiscal policy was even less effective than monetary policy.

Question

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Classical macroeconomists believed in the concept of Say's Law, which states that supply creates its own demand. They believed that the economy would automatically adjust to full employment equilibrium without the need for government intervention. Therefore, they considered both fiscal and monetary policies to be ineffective in changing the level of economic activity.

The Classical Macroeconomists Believed That Fiscal Policy Was Even Less