New classical economists
A)stress the importance of federal budget deficits in stimulating aggregate demand.
B)hold that, left alone, the economy gravitates to its full-employment level of output.
C)emphasize tax cuts as means of increasing aggregate supply.
D)advocate active use of monetary policy to stabilize the economy.

Question

Quizplus · Accepted Answer

New classical economists believe that the economy is self-correcting and will naturally return to its full-employment level of output without government intervention.

New Classical Economists