If asked about the basic functioning of the economy,a classical economist would claim that:
A) the market tends toward stability and full employment.
B) the market tends toward instability and cyclical unemployment.
C) prices are slow to adjust.
D) the economy needs help in moving back to full employment.
E) the short run is more significant than the long run.

Question

Quizplus · Accepted Answer

Classical economists believe that the economy tends toward stability and full employment in the long run, as the market adjusts to clear any imbalances or inefficiencies. They advocate for a laissez-faire approach to economic policy, where government intervention is minimal and the market is allowed to operate freely. They also believe in the flexibility of prices and wages to adjust to changes in supply and demand.

If Asked About the Basic Functioning of the Economy,a Classical