According to classical macroeconomists,prices adjust ________ to shocks,so the government should ________.
A)slowly; do little
B)rapidly; do little
C)rapidly; fight recessions
D)slowly; fight recessions

Question

Quizplus · Accepted Answer

Classical macroeconomists believe that prices adjust rapidly to shocks, which allows the economy to quickly return to equilibrium without the need for government intervention. Therefore, they generally advocate for the government to do little in response to economic fluctuations.

According to Classical Macroeconomists,prices Adjust ________ to Shocks,so the Government