Which of the following concepts is not consistent with Classical theory?
A) Self-adjustment of the economy
B) Use of monetary policy
C) Flexible prices
D) A laissez faire approach

Question

Quizplus · Accepted Answer

The use of monetary policy to stabilize the economy is not consistent with Classical theory, which holds that the economy will self-adjust to restore equilibrium in the long run without the need for government intervention. Classical theory emphasizes the importance of flexible prices and a laissez faire approach, in which the government does not interfere with market forces.

Which of the Following Concepts Is Not Consistent with Classical