Most economists believe that classical economic theory is a good description of the world over which of the following time periods?
A)in neither the short nor long run
B)in the short run and in the long run
C)in the short run, but not in the long run
D)in the long run, but not in the short run

Question

Quizplus · Accepted Answer

Classical economic theory is based on the assumption that markets are self-correcting and will eventually reach equilibrium. This may not be true in the short run due to market distortions, such as government intervention, but over the long run, markets tend to correct themselves. Therefore, most economists believe that classical economic theory is a good description of the world in the long run, but not necessarily in the short run.

Most Economists Believe That Classical Economic Theory Is a Good