Question 22 Neoclassical economists argue the economy will: O Inflation can help pull the economy out of a recession O Governments can correct unemployment by running deficits O Will adjust back to potential GDP through flexible prices O Markets fail to correct when recessions occur Question 23 Keynesian economists argue that: O Will adjust back to potential GDP through flexible prices O Inflation can help pull the economy out of a recession O Governments can correct unemployment by running surpluses O Multipliers explain how government fiscal policy fails to correct economic problems Question 24 Neoclassical economists take a: O Long-term, non-interventionist view of the economy O Short-term, interventionist view of the economy O Long-term, interventionist view of the economy O Short-term, non-interventionist view of the economy