Classical economists believe that economic policies are ineffective because they don't affect aggregate demand in the economy.

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Classical economists believed in the principle of Say's Law, which states that supply creates its own demand. They believed that markets would always tend towards equilibrium on their own and that government intervention in the form of economic policies (such as fiscal and monetary policies) was unnecessary and possibly counterproductive. However, modern economists recognize the role that economic policies can play in managing aggregate demand and stabilizing the economy.

Classical Economists Believe That Economic Policies Are Ineffective Because They