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.
Solution Preview
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 - ...
... (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 ...
... 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 ...
... The reasons above are a good example of why the Classical Economists are still (most) important. ... There are lots of Classical Economists today. ...
... Keynesian Economists who believe that government intervention is necessary to restore the economy to its potential GDP while Classical Economists believe the ...
...Economics and trade of classical As for Republican Rome, During the age of Imperial Economics and Trade: Greece was based on economics was based on Rome, as ...
