What are the defining features of classical macroeconomics and what policies do classical macroeconomists recommend?
What will be an ideal response?
Classical macroeconomists believe that the economy is self-regulating and always at full employment. Classical macroeconomists assert that the proper government policy is to minimize the disincentive effects of taxes on employment, investment, and technological change.
Economics
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What does a budget constraint represent? How do budget constraints explain the trade-offs that consumers face?
What will be an ideal response?
Economics
The Lerner Index is preferred to the Herfindahl-Hirschman Index as a measure of market power due to the former's simplicity and straightforward interpretation
Indicate whether the statement is true or false
Economics