Question

_____________ economists believed that the policy of balanced budget may not always be suitable for the economy.

• A. Classical
• B. Modern
• C. Neo-classical
• D. None of the above

Answer 1

The correct option is A Classical

The classical economist advocated and proposed the concept of balanced where according to them, a balanced budget refers to a budget where the government expenditure and government revenue are equal and there is no surplus budget or deficit budget in the economy. They believed that for some types of economies the policy of balanced budget may not be suitable.