Question

Classical economists tend to

	see unemployment as a persistent economic problem.
	believe in Keynesian economics.
	reject the equality of savings and investment.
	support Say's law.

Classical economists argued that

	there would always be an excess of saving over investment.
	workers had money illusion.
	excess savings would create unemployment.
	a flexible interest rate would make saving equal to investment.

Answer 1

1. Classical economist tend to support Say's law which states that supply creates it's own demand.

So, the correct answer is an option (d).

2. Classical economist beliefs that price, wages and interest rate are flexible.

And classical economist argued that a flexible interest rate would make saving equal to investment.

So, the correct answer is (d).