Classical economists who assume the "invisible hand" works reasonably well do not argue that
A) the government should have a limited role in the economy.
B) government policies will be ineffective and counterproductive.
C) the government should actively intervene in the economy to eliminate business cycles.
D) wages and prices adjust quickly to bring the economy back to equilibrium.

Question

Quizplus · Accepted Answer

Classical economists believe that the market will naturally correct itself over time without the need for government intervention. Therefore, they do not argue that the government should actively intervene in the economy to eliminate business cycles. A, B, and D are all consistent with the classical economic view.

Classical Economists Who Assume the "Invisible Hand" Works Reasonably Well