Who argued that the economy should be left to itself to close a contractionary gap?
A)John F.Kennedy
B)John Maynard Keynes
C)the mercantilists
D)the classical economists
E)the socialists

Question

Quizplus · Accepted Answer

Classical economists, such as Adam Smith and David Ricardo, believed that the economy would naturally self-correct and return to full employment without government intervention when faced with a contractionary gap. They believed in the concept of the "invisible hand" guiding the market, and that prices and wages would adjust to restore equilibrium. This is in contrast to Keynesian economics, which argued that government intervention through fiscal policy (such as increasing government spending or cutting taxes) was necessary to close a contractionary gap and stimulate the economy.

Who Argued That the Economy Should Be Left to Itself