If an economy is experiencing a recession,the classical approach to achieving full employment is to:
A) Do nothing and wait for natural market forces to improve the economy.
B) Increase the growth of the money supply.
C) Use all available supply-side options.
D) Cut taxes and increase government spending.

Question

Quizplus · Accepted Answer

The classical approach to economics suggests that in the event of a recession, the economy should be left alone to adjust and correct itself through natural market forces, without intervention from the government. This is based on the belief that markets are efficient and will naturally return to equilibrium and full employment over time.

If an Economy Is Experiencing a Recession,the Classical Approach to Achieving