Classical Economists Believed That in the Long Run the Economy

question 267

Multiple Choice

Classical economists believed that in the long run the economy would fix itself,thus there was no need for any government action.Which of the following economists disagreed,saying,"In the long run,we are all dead."

• A)Milton Friedman
• B)Arthur Laffer
• C)George Lucas
• D)John Maynard Keynes

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Definitions:

Tacit-knowledge

Unwritten, unspoken, and hidden vast store of knowledge gained through experience, which is hard to transfer to another person by writing it down or verbalizing it.

Deductive Reasoning

Type of logical reasoning that moves from a general premise about a class to a conclusion about a particular member or members of the class.

Fluid Intelligence

The ability to use reasoning and solve new problems without relying on knowledge previously gained.

Reorganizing Stage

A phase in various processes (e.g., psychological development, corporate restructuring) where existing structures or strategies are revised and restructured.