What is the primary reason for classical economists’ belief that the government does not need to respond to a demand shock that results in unemployment?

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Question:
What is the primary reason for classical economists’ belief that the government does not need to respond to a demand shock that results in unemployment?

1.Demand shocks are almost always minor.

2.Real wages are extremely malleable.

3.Governments are notorious for acting too late.

4.Unemployment was never caused by a lack of demand

Posted Date:-2023-12-04 04:04:45

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