Which of the Following Policy Statements Would a Classical Economist

question 145

Multiple Choice

Which of the following policy statements would a classical economist tend to support?

• A) The government should be prepared to intervene when aggregate demand changes in any way.
• B) The government should only intervene in the economy when aggregate demand decreases.
• C) The government should allow the economy to adjust to changes in aggregate demand on its own,without interference.
• D) The government should frequently change taxes and spending levels to manipulate the economy.
• E) The government should only intervene in the economy when aggregate demand increases.

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Definitions:

Negligent

Failing to exercise the care that a reasonably prudent person would exercise in similar circumstances, resulting in harm or damage.

Strict Liability

Strict liability is a legal doctrine that holds a party responsible for their actions or products, without the plaintiff having to prove negligence or fault.

Just Society

A societal ideal where individuals receive fair treatment and an impartial share of benefits.

Tort Law

The area of law that covers most civil suits, except breach of contract, focusing on personal injuries and damages to property.