Classical vs Keynesian Economists

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Questions and Answers

According to classical economists, how do they view business cycles?

As irrelevant to the economy
As a sign of economic collapse
As requiring constant government intervention
As the economy's best response to disturbances (correct)

What is the main reason Keynesian economists defend government intervention?

To destabilize the economy
To accelerate business cycles
To eliminate the need for business cycles
To counteract slow wages and prices adjustment over output and employment (correct)

How do classical economists perceive the need for government intervention in the economy?

They promote government intervention in every economic cycle
They believe in constant government control over all aspects of the economy
They see little to no need for government intervention (correct)
They advocate for complete government deregulation

What is the primary argument of Keynesian economists against the classical view of business cycles?

<p>Slow wages and prices adjustment can harm output and employment (A)</p> Signup and view all the answers

How do Keynesian economists differ from classical economists regarding government intervention?

<p>Keynesian economists support intervention to counteract slow wage and price adjustments, while classical economists oppose such intervention (B)</p> Signup and view all the answers

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