Classical economists advocate the view that a free market economy:
A) should be replaced by a command economy.
B) will automatically tend to operate at full employment.
C) is best stabilized by using fiscal and monetary policy tools.
D) is best stabilized by extensive use of all government tools, including regulation.

Question

Quizplus · Accepted Answer

Classical economists believe in the self-regulating nature of markets and argue that a free market economy, if left to its own devices, will naturally adjust to operate at full employment without the need for significant government intervention.

Classical Economists Advocate the View That a Free Market Economy