The position that the economy will automatically tend to operate at full employment without government intervention is most closely associated with:
A) classical economics.
B) Keynesian economics.
C) supply-side economics.
D) new Keynesian economics.

Question

Quizplus · Accepted Answer

Classical economics posits that the economy is self-regulating and will naturally adjust to achieve full employment and optimal economic performance without the need for government intervention. This contrasts with Keynesian economics, which argues that active government intervention is necessary to manage economic cycles.

The Position That the Economy Will Automatically Tend to Operate