Which of the Following Policy Statements Would a Classical Economist

question 37

Multiple Choice

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

• A) The government should be prepared to intervene when the economy changes in any way.
• B) The government should only intervene in the economy when total output decreases.
• C) The government should allow the economy to adjust to changes in 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 total output increases.

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