What is classical economics?

Athe idea that government spending and tax cuts help an economy
Bthe idea that free markets can regulate themselves
Cthe idea that every one dollar of government spending creates more than one dollar in economic activity
Da form of demand-side economics that encourages government action to increase or decrease demand and output

Verified Answer :

I would say B because classical economics is also known as liberal economics and that means that markets function best with minimal government interference.

Answer:

The correct answer is B. Classical economics is the idea that free markets can regulate themselves.

Explanation:

Classical economics is an economic school that emerged in the eighteenth century and was the dominant trend within economic science for much of the nineteenth century.


With the rise of classical economics, economy became an independent scientific area for the first time. The ideas of the classics are largely in line with economic liberalism and are based on the ability of free markets to regulate themselves.

The precise definition of the traditional economy is not certain, but Adam Smith and David Ricardo are usually its most important representatives.