Most economists believe that classical economic theory is a good description of the world:
A)in the short run, but not in the long run
B)in the long run, but not in the short run
C)in the short run and in the long run
D)in the nineteenth century, but not in the twentieth century

Question

Quizplus · Accepted Answer

Classical economic theory is based on the idea that the economy will naturally reach equilibrium and self-correct in the long run, but may experience short-term fluctuations and deviations from equilibrium. However, in the short run, there may be various factors such as shocks or government interventions that can disrupt the natural market forces and create deviations from classical theory. Therefore, most economists believe that classical economic theory is a good description of the world in the long run, but not necessarily in the short run.

Most Economists Believe That Classical Economic Theory Is a Good