Final answer:
The statement is false; classical economics posits that the economy is self-correcting and does not require frequent fine-tuning to reach full employment. The neoclassical model emphasizes long-term growth and labor market functions, while Keynesian economics sees a role for policy, especially during recessions.
Step-by-step explanation:
According to the classical model, the notion that the economy requires frequent fine-tuning to reach full employment is false.
Classical economists believe that the economy is self-correcting and markets will naturally adjust to reach full employment without the need for government intervention. This view contrasts with Keynesian economics, which suggests that active policy measures are often necessary to achieve full employment, especially during recessions and economic downturns like the 1930s Great Depression.
The neoclassical model, which has its roots in classical economics, also does not support the idea of regular intervention. It focuses on long-term growth by looking at aggregate supply and the functions of labor markets. On the other hand, the Phillips Curve, as found within Keynesian economics, illustrates a short-run tradeoff between inflation and unemployment, indicating a role for policy in managing the economy.