Classical economists think that the government ________ use fiscal policy to dampen the business cycle because prices and wages adjust ________.
A)should not; rapidly
B)should not; slowly
C)should; slowly
D)should; rapidly

Question

Quizplus · Accepted Answer

Classical economists believe that the government should not use fiscal policy to intervene in the business cycle because they argue that prices and wages adjust rapidly to changes in supply and demand, allowing the economy to self-correct.

Classical Economists Think That the Government ________ Use Fiscal Policy