Classical economists believed all of the following EXCEPT that:
A)there could be temporary periods of unemployment.
B)emphasis should be on the long run, and in the long run all would be set right because of the smooth functioning of the price system.
C)the Great Depression would be a short-run aberration.
D)monetary policy could tame the business cycle.

Question

Quizplus · Accepted Answer

Classical economists generally believed that the economy is self-correcting and that monetary policy is not necessary to manage the business cycle, as the price system would naturally adjust to restore equilibrium.

Classical Economists Believed All of the Following EXCEPT That