According to classical economists,in recessions,the government should
A)stimulate the economy to increase demand.
B)actively use fiscal policy to combat the recession.
C)increase the minimum wage so that poor people will be able to afford necessities.
D)eliminate barriers to labor market adjustment, such as burdensome regulations on businesses.

Question

Quizplus · Accepted Answer

Classical economists believe in the self-correcting nature of markets and argue that government intervention can often lead to inefficiencies. They advocate for reducing barriers to labor market adjustments, such as eliminating burdensome regulations on businesses, to allow the economy to correct itself naturally during recessions.

According to Classical Economists,in Recessions,the Government Should