Classical macroeconomists believed that a market-based economy has ________ self-correcting forces and thus ________ business cycles.
A)strong,mild and fleeting
B)strong,violent and prolonged
C)weak,mild and fleeting
D)weak,violent and prolonged

Question

Quizplus · Accepted Answer

Classical macroeconomists believed in the self-correcting nature of the market economy, with price and wage adjustments leading to the restoration of equilibrium in the long run. They recognized that business cycles existed but believed that they were mild and fleeting rather than violent and prolonged. Therefore, the best choice is A, where self-correcting forces are strong, and business cycles are mild and fleeting.

Classical Macroeconomists Believed That a Market-Based Economy Has ________ Self-Correcting