Which of the following policy statements would a classical economist tend to support?
A) The government should be prepared to intervene when the economy changes in any way.
B) The government should only intervene in the economy when total output decreases.
C) The government should allow the economy to adjust to changes in demand on its own, without interference.
D) The government should frequently change taxes and spending levels to manipulate the economy.
E) The government should only intervene in the economy when total output increases.

Question

Quizplus · Accepted Answer

Classical economists believe in the idea of laissez-faire, which means that the government should not interfere in the economy and the market should be allowed to adjust to changes in demand on its own. They believe that the market is self-regulating and will automatically adjust to any changes without any intervention.

Which of the Following Policy Statements Would a Classical Economist