The most appropriate countercyclical policy, or stabilization policy, in times of unemployment, according to classical economists, is for the government to:
A) increase the minimum wage.
B) do nothing.
C) stimulate aggregate demand.
D) cut taxes.

Question

Quizplus · Accepted Answer

Classical economists believe in the self-correcting nature of markets and argue that the best course of action during times of unemployment is for the government to not intervene, allowing the economy to adjust on its own.

The Most Appropriate Countercyclical Policy, or Stabilization Policy, in Times