One of the most important views expressed by classical macroeconomists was that:
A) Wages and prices are inflexible
B) Wages and prices are always rising
C) Demand creates its own supply
D) Supply creates its own demand

Question

Quizplus · Accepted Answer

Classical macroeconomists believed in Say's Law, which states that supply creates its own demand. This means that as long as producers are producing goods and services, they will create enough income for consumers to buy those goods and services. This is in contrast to Keynesian economics, which argues that demand can sometimes be insufficient to create full employment and that government intervention is necessary to stimulate economic activity.

One of the Most Important Views Expressed by Classical Macroeconomists