Two economists,Smith and Jones,are discussing the currently high unemployment rate.Smith says that something ought to be done quickly because the economy may not be able to restore itself to full employment.Jones says that it is better to take a "hands-off" approach.Which of the following is most likely to be true?
A) Smith and Jones are most likely both Keynesian economists with a few minor differences of opinion.
B) Smith and Jones are most likely both classical economists with a few minor differences of opinion.
C) Jones is likely to be a Keynesian economist and Smith is likely to be a classical economist.
D) Smith is likely to be a Keynesian economist and Jones is likely to be a classical economist.
E) none of the above.

Question

Quizplus · Accepted Answer

Smith's concern about the need to take action to address high unemployment suggests a Keynesian approach which advocates for government intervention to stimulate demand and create jobs. On the other hand, Jones' call for a "hands-off" approach suggests a classical perspective which favors free markets and minimal government intervention. Therefore, it is likely that Smith is a Keynesian economist and Jones is a classical economist.

Two Economists,Smith and Jones,are Discussing the Currently High Unemployment Rate