Question

Adam is an economist who believes that in the long run, all prices are flexible and that any increase in the money supply will lead only to inflation, not an increase in aggregate output. Because the economy would self-correct to long-run equilibrium output, there is no role for either fiscal or monetary policy. Adam is best described as a _____.

A. supply-side economistB. Keynesian economistC. classical economistD. monetarist

Answer 1

The correct answer is C. classical economist.

Step-by-step explanation:

Classical economics reoriented economic thinking away from the approach that was based on the preferences of rulers or social classes. The classics emphasized the benefits of free trade and developed an organized analysis of the value of goods and services as a reflection of their cost of production.

Classical economists opposed government intervention in the market through price controls, fees, regulations or any other mechanism that altered its normal functioning.