What role should the government play in the economy according to neoclassical ec
ID: 1119505 • Letter: W
Question
What role should the government play in the economy according to neoclassical economists?
neoclassical economists believe the government should not intervene to stabilize business cycles.
neoclassical economists believe the government should not intervene in the economy except in the area of health care.
neoclassical economists believe the government should intervene in order to increase social equality.
neoclassical economists believe the government should intervene to stabilize business cycles.
a.neoclassical economists believe the government should not intervene to stabilize business cycles.
b.neoclassical economists believe the government should not intervene in the economy except in the area of health care.
c.neoclassical economists believe the government should intervene in order to increase social equality.
d.neoclassical economists believe the government should intervene to stabilize business cycles.
Explanation / Answer
According to neoclassical approach, the government should leave the economy to the market forces of demand and supply. Price and output will be determined by the forces of demand and supply and there is no need of government intervention.
Hence it can be said that neoclassical economists believe the government should not intervene to stabilize business cycles.
Hence option first is the correct answer.
Ans; option first; neoclassical economists believe the government should not intervene to stabilize business cycles.
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