A government leader who believes that wages and prices are flexible, savings helps an economy, and the long run should be the time period of focus holds a _____ perspective on economic policy.
A) Keynesian
B) supply-side
C) classical
D) monetarist

Question

Quizplus · Accepted Answer

The classical economic theory posits that wages and prices are flexible, savings are beneficial for the economy, and emphasizes long-term economic outcomes. This perspective contrasts with Keynesian economics, which focuses on short-term interventions and the inflexibility of wages and prices.

A Government Leader Who Believes That Wages and Prices Are