In periods of relatively high levels of unemployment,a classical economist would advocate which of the following governmental policies to move the economy toward full employment?

A) Wage and price controls
B) None or a laissez-faire policy
C) Fiscal policy
D) Monetary policy
E) Money surpluses because only unanticipated changes work

Question

Maurissa Nicole · Accepted Answer

Final Answer : B, Explanation :  Classical economists believe in the self-correcting nature of markets with minimal government intervention. They argue that if left alone, the economy will naturally adjust back to a state of full employment through the flexibility of prices and wages.

Definitions

Learning Objectives

Learning Objectives

Related questions