Question

The classical economists believed that the government can rescue the people in times of economic distortions through unbalanced budgets.

• A. True
• B. False

Answer 1

The correct option is B False

False.

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. According to them, government could rescue the people in times of distortions through balanced budgets.