Question

What did all the classical economists believe about economics?

Answer 1

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The fundamental principle of the classical theory is that the economy is self‐regulating. Classical economists maintain that the economy is always capable of achieving the natural level of real GDP or output, which is the level of real GDP that is obtained when the economy's resources are fully employed.

Answer 2

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The main principle of classical economy is that economy is self regulating.

The classical economist says that economy is always capable of regulating natural GDP or output