Final answer:
Neoclassical economics is the school of thought that explains long-term economic growth, focusing on aggregate supply and productivity growth while advocating for limited active economic stabilization policies.
Step-by-step explanation:
The economic school of thought known to do a good job explaining long-term economic growth is neoclassical economics. Neoclassical economists tend to focus more on long-term economic growth rather than recessions. They place a significant emphasis on aggregate supply, believing that productivity growth dictates the potential level of Gross Domestic Product (GDP).
These economists typically expect the economy to return to full employment after shifts in aggregate demand, and they are generally skeptical about the effectiveness and timeliness of Keynesian policy measures for active economic stabilization. Hence, neoclassical economists usually advocate for a limited role in such policies and tend towards a more laissez-faire approach to economic management.