According to the classical economists, an economy producing $15 trillion in goods and services
A)may be producing too much since the needs of people may not be this great.
B)simultaneously generates the income necessary to purchase $15 trillion in goods and services.
C)is supplying $15 trillion in goods and services, but could be demanding more or less than $15 trillion in goods and services for a very long period of time.
D)could experience a permanent glut if no one has estimated the demand for goods and services in the economy.

Question

Quizplus · Accepted Answer

According to classical economists, the economy simultaneously generates the income necessary to purchase the goods and services it produces, so the level of production and income would be the same at $15 trillion. Option A is incorrect because classical economists believe in the concept of unlimited wants and needs, which can never be fully satisfied. Option C is incorrect because classical economists believe that market forces eventually adjust production and demand in the long run. Option D is incorrect because there is no mention of the demand being estimated or not, and classical economists believe that market forces will eventually correct any imbalances in supply and demand.

According to the Classical Economists, an Economy Producing $15 Trillion