According to the classical model,if the government wanted to increase employment,it could do so by increasing its own spending.That would lead firms to produce more output,for which they would need to hire more workers.

Question

Quizplus · Accepted Answer

The classical model suggests that the economy is self-regulating and that markets always clear, meaning that any government intervention, such as increased spending, would not affect employment levels in the long run. Instead, employment is determined by factors like technology and preferences, not government spending.

According to the Classical Model,if the Government Wanted to Increase