Question

Neoclassical economists believe that __________________. fiscal policy used to stimulate aggregate demand will not lead to...

Neoclassical economists believe that __________________.

fiscal policy used to stimulate aggregate demand will not lead to economic growth

the economy will self correct in a recession

the way to grow the economy is by growing productivity through investments in human and physical capital and technology improvements

All of the above.

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Answer #1

Neoclassical economists believe that the economy will self correct in a recession in the long run. It also believes that fiscal policy used to stimulate aggregate demand will not lead to economic growth. The forces determining economic growth are labor, capital and technology. The way to grow the economy is by growing productivity through investments in human and physical capital and technology improvements. Technology is the driving force behind economic growth. Changes in technology have major influence on any economy. Therefore, all the given options are correct.

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