Multiple Choice
Which of the following did classical economists believe would happen if the economy experienced a downturn?
A) Prices would rise.
B) Interest rates would rise.
C) The economy would self-correct.
D) The government would fix the inefficiencies.
Correct Answer:

Verified
Correct Answer:
Verified
Q106: When withdrawals equal injections, the economy<br>A) is
Q110: Firms decide how much to invest by
Q111: Suppose the government believes consumers should spend
Q112: Disposable income equals:<br>A) income minus government spending.<br>B)
Q116: In the Keynesian aggregate expenditure model, prices
Q117: (Figure: Simple Keynesian Model) In the figure
Q118: The full Keynesian model illustrates the importance
Q119: What is the main claim of the
Q202: If $1,000 of additional spending occurs and
Q259: Saving is equal to<br>A) disposable income minus