The classical economists believedA) wages and prices were inflexible downward.B) if nothing was done,recessions would become depressions.C) recessions needed quick countercyclical action by the government.D) the economy was essentially self regulating.

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azeem patel · Accepted Answer

Final Answer : D, Explanation :  The classical economists believed that the economy was essentially self-regulating and that government intervention was not necessary. They believed that the market would naturally adjust itself to restore equilibrium in the long run, even during recessions or economic downturns. They also believed that wages and prices were flexible and would adjust accordingly in response to changes in supply and demand. They did not advocate for quick countercyclical actions by the government or believe that recessions would become depressions if left alone.

The classical economists believed

A) wages and prices were inflexible downward.
B) if nothing was done,recessions would become depressions.
C) recessions needed quick countercyclical action by the government.
D) the economy was essentially self regulating.

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