Asked by Brisa Sanchez on May 19, 2024
Verified
Which of the following is false?
A) The classical economists relied on market forces to create full employment.
B) Keynes advocated an active government role for curing a recession.
C) Keynes suggested that full employment was a "rare and short-lived occurrence."
D) The classicals believed demand created its own supply.
Classical Economists
Economists from the 18th and 19th centuries who believed in free markets, limited government intervention, and self-regulating economies.
Market Forces
The economic factors affecting the price, demand, and availability of goods and services in a market economy, primarily supply and demand.
Full Employment
A situation in which all available labor resources are being used in the most economically efficient way, typically characterized by the absence of cyclical unemployment.
- Familiarize yourself with the essential contrasts between classical and Keynesian approaches in economics.
- Describe the historical context and evolution of economic thought from classical to Keynesian perspectives.
Verified Answer
SA
sameera abunilMay 23, 2024
Final Answer :
D
Explanation :
The statement that is false is D) "The classicals believed demand created its own supply." This is a misrepresentation of the classical economic theory. The correct principle is "supply creates its own demand," known as Say's Law, not the other way around.
Learning Objectives
- Familiarize yourself with the essential contrasts between classical and Keynesian approaches in economics.
- Describe the historical context and evolution of economic thought from classical to Keynesian perspectives.