A classical economist spends a good deal of time worrying that:
A) policies will overshoot their output marks and can therefore never move GDP closer to its potential.
B) government spending will crowd private spending and investment out of the market.
C) stabilization policy is never sufficiently "fine-tuned."
D) aggregate demand is not sufficient to support GDP at its potential.
E) all of the above.
The roles of government are to ensure the free workings of markets, using supply-side policies and to ensure a balanced budget.
<br>
<br>Classical Theory - ...
Solution Summary
Describe a classical economist
$2.19
See Also This Related BrainMass Solution
Classical economics and Keynesian economics
Compare the ideas of the Classical economists with the ideas of John Maynard Keynes, and explain what kind of revolution the Keynesian revolution was?
Compare the ideas of the Classical economists with the ideas of John Maynard Keynes, and explain what kind of revolution the Keynesian revolution was? ...
... (iv) Classical economists think that excess money supply is the main cause of inflation whereas Keynesian thinks that excess aggregate demand is the reason for ...
If you were having a conversation with a Keynesian and a Classical economist, and the conversation turned to why the economy is experiencing high unemployment ...
... Economic school of thought 1. The classical economist believes that the economy self regulates and the government should not intervene to attempt to correct ...
... supports the theories of each of the following: Classical, New Classical, Keynesian, New ... Which of the two economists do you agree with more, and explain why. ...
... Which of the following is not true about classical economists? ... The Classical economists believed in the self-correcting nature of the economic system. ...
... As per instructions, we will discuss about the writer's thoughts in concern to the classical finance theory and the law of economics that writer is talking ...
