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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Contagion Theory

A social theory that explains how ideas, attitudes, and behaviors spread through populations as if they were infectious diseases.

Crowd

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