According to the Classical economists, the economy
A) requires fine-tuning to reach full employment.
B) has sticky prices in many industries.
C) is self-correcting.
D) will never be at full employment.

Question

Quizplus · Accepted Answer

According to the Classical economists, the economy is self-correcting. This means that the economy will automatically adjust itself to reach full employment over time, without the need for government intervention or fine-tuning. This idea is based on the notion that markets are efficient and that prices will adjust to clear any imbalances or shortages in the economy, leading to full employment in the long run. Therefore, options A and D are incorrect, while option B may be true in certain industries, but does not reflect the overall Classical view of the economy.

According to the Classical Economists, the Economy