Classical economists held the view that in the economy:
A) Demand creates its own supply
B) Unemployment is temporary and is soon eliminated
C) There is an imbalance between saving and investment
D) It is difficult for an economy to adjust because wages and prices are inflexible

Question

Quizplus · Accepted Answer

Classical economists believed in the concept of Say's Law, which states that supply creates its own demand. This means that they believed that if goods were produced, they would be purchased by the market. As a result, they believed that unemployment was only temporary and would soon be eliminated as the economy adjusted to the supply of goods.

Classical Economists Held the View That in the Economy