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Which of the Following Did Classical Economists Believe Caused Depressions

question 145

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Which of the following did classical economists believe caused depressions and high unemployment?


Definitions:

Maximum Output Level

The highest quantity of a good or service that can be produced efficiently with available resources and technology.

Profit Incentive

A profit incentive is a financial or material reward that motivates individuals or businesses to pursue certain actions or goals for economic gain.

Classical Theory

An economic theory that suggests that free markets operate under the laws of supply and demand and are self-regulating.

Employment

The condition of having paid work.

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