Question

Which of the following do

classical economists
emphasize?
A. the good effects of increases in the
average price level
B. the self-correcting aspect of market
forces
C. the ability of government intervention to
stimulate real output
D. the ineffectiveness of the factors of
production

Answer 1

Step-by-step explanation:

Classical economists, such as Adam Smith, David Ricardo, and John Stuart Mill, believed in the development of a free economy with minimal government intervention1. They emphasized the self-correcting aspect of market forces and believed that the economy would naturally return to equilibrium without government intervention2. Therefore, option B is the correct answer.

Option A is incorrect because classical economists believed that inflation caused by increases in the average price level would reduce the purchasing power of money and negatively impact economic growth1.

Option C is incorrect because classical economists believed that government intervention could lead to market inefficiencies and distortions1.

Option D is incorrect because classical economists believed that factors of production, such as land, labor, and capital, were essential for economic growth3.