The concept of "market clearing" is adopted and defended by
A) Keynesian economists.
B) Classical economists.
C) fine-tuning economists.
D) demand-side economists.

Question

Quizplus · Accepted Answer

Market clearing is a concept which is central to classical economics whereby free markets are believed to naturally find a balance where supply and demand are in equilibrium, leading to efficient allocation of resources. Keynesian economists, on the other hand, tend to support government intervention to stabilize the economy during periods of recession, and demand-side economists focus on increasing demand through fiscal and monetary policies. Fine-tuning economists are a type of Keynesian economist who advocate for constant adjustment of government policies in response to economic changes. Therefore, the concept of market clearing is most closely associated with classical economics.

The Concept of "Market Clearing" Is Adopted and Defended by