Which of the Following Policy Statements Would a Classical Economist

question 145

Multiple Choice

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

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

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