The basic policy implication of the classical school is:
A) government should maintain zero growth in the money supply.
B) there is no need for government intervention to correct economic problems.
C) government intervention to regulate the economy will be made more effective by coordinating actions of households and businesses.
D) price stickiness and conflicts between labor and management require government intervention to move an economy to full employment.

Question

Quizplus · Accepted Answer

The classical school of economics argues that the economy is self-regulating and that market forces naturally adjust to correct any imbalances, thus implying there is no need for government intervention to correct economic problems.

The Basic Policy Implication of the Classical School Is