Multiple Choice
Classical economists oppose government intervention in the economy for all the reasons below except that
A) policies to smooth out the business cycle are undesirable in principle.
B) increased government expenditures will lower the real wages of workers.
C) government policy is incapable of smoothing out the business cycle.
D) increases in government spending cannot increase the level of output and employment in the economy.
Correct Answer:

Verified
Correct Answer:
Verified
Q10: Which of the following equations is most
Q11: According to the RBC theory of business
Q12: To support the RBC approach according which
Q13: The primary reason why the Central Bank
Q15: According to the misperceptions theory,after an unanticipated
Q16: According to the RBC theorists,<br>A)an increase in
Q17: According to the misperceptions theory,if the Bank
Q18: If the utilization rates of capital and
Q19: Which of the following is NOT an
Q52: The distinction between real and nominal shocks