Those who hold the classical view of the labor market are likely to believe that ?

A. neither monetary nor fiscal policy will have an effect on output and employment
B. monetary but not fiscal policy will have an effect on output and employment
C. Fiscal, but not monetary policy will have an effect on output and employment
D. both monetary and fiscal policy will have an effect on output and employment

Correct Answer: neither monetary nor fiscal policy will have an effect on output and employment ✔

Last Updated: June 11, 2019