According to new classical economists, the most appropriate policy during a recession would be for the government to
A) increase the minimum wage.
B) impose wage and price controls.
C) cut taxes and increase the budget deficit.
D) do nothing.

Question

Quizplus · Accepted Answer

New classical economists believe that markets are self-correcting and that government intervention can lead to inefficiencies. Therefore, they advocate for a non-interventionist approach, allowing the economy to adjust on its own.

According to New Classical Economists, the Most Appropriate Policy During