Statement I: The classical economists believed recessions were temporary and would cure themselves.
Statement II: The Keynesians believed the economy was basically unstable and that government intervention was needed to cure depressions.

Question

Quizplus · Accepted Answer

Classical economists indeed thought that markets were self-correcting and that recessions would naturally correct themselves over time. Keynesians, on the other hand, believed that the economy could remain in a depressed state for a long time without government intervention, thus advocating for active fiscal and monetary policies to mitigate economic downturns.

Statement I: the Classical Economists Believed Recessions Were Temporary and Would