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    Invisible Hand Theory

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    The invisible hand theory which essentially says, people by pursuing their own economic self interest, help allocate resources in the economy as if an "invisible hand" is at work to do so. How would you say this theory manifests itself in the hands-off approach of the classical economists with respect to government intervention in the economy?

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    Classical economists concurred with Adam Smith that there was an invisible hand that regulated the market. That is, if people were acting in ...

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    This brief solution of 90 words explains the invisible hand theory by Adam Smith.