Which of the Following Economic Statements Would a Classical Economist

question 70

Multiple Choice

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

• A) Savings is crucial to economic growth because it leads to investment in productive capital.
• B) Government intervention is often necessary to stimulate or moderate economic performance.
• C) Aggregate demand is the most important side of the economy.
• D) Savings is a drain on aggregate demand and can reduce economic growth.
• E) The short run is far more important than the long run.

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Definitions:

Articles of Capitulation

Documents that outline the terms and conditions under which a military force surrenders, typically agreed upon by conflicting parties during a conflict.

Epidemics

The prevalent spread of contagious illnesses within a community during a specific period.

Spanish Demands

The requests or requirements set forth by Spain, historically in the context of its empire or more recent diplomatic and economic negotiations.

Apalachee

A Native American people historically located in the Florida Panhandle, known for their mound-building and agricultural practices.