Classical economists who assume the "invisible hand" works reasonably well do NOT argue that
A)the government should have a limited role in the economy.
B)government policies will be ineffective and counterproductive.
C)the government should actively intervene in the economy to eliminate business cycles.
D)wages and prices adjust quickly to bring the economy back to equilibrium.

Question

Quizplus · Accepted Answer

Classical economists believe in a laissez-faire approach and argue that the government should have a limited role in the economy. They do not advocate for active intervention to eliminate business cycles as this goes against the idea of the market being self-regulating.

Classical Economists Who Assume the "Invisible Hand" Works Reasonably Well