Question

Some people believe that government should guarantee its citizens a basic standard of living by raising the minimum wage, providing housing assistance to the poor, and offering health care coverage to everyone. What type of economist would favor this view?(A) Classical economists(B) Keynesians(C) Monetarists(D) All would favor this view

Answer 1

The correct answer is option B.

Step-by-step explanation:

The classical economists believed in Laissez-faire. They had the opinion that the economy can reach equilibrium on its own through the working of the market forces. They advocated no government intervention in the market.

The monetarists hold the belief that the government can affect the performance of the economy by controlling the money supply.

Keynesian economists believe that a government is necessary for the smooth functioning of the economy. They hold the view that market forces do not always work efficiently and there are situations where the market forces fail inefficient allocation of goods and services. In such situations government intervention is necessary.