Question

Which macroeconomic school of thought is associated with laissez-faire and what role does laissez-faire apply to government in terms of pursuing the macroeconomic goals of full employment, price stability, and growth

Answer 1

Answer: Classical school of thought

Explanation:

Laissez-faire means that the government should not attempt to intervene in economic except to protect the system as well as life and liberty and this was associated with classical economists/

They believed that the economy would eventually adjust itself to whatever is going on because there were natural laws that applied to economics that ensured that economic systems would adjust to whatever adverse scenario they were going through.

They argued that government intervention would hinder these laws so they do not believe that the government has any roles in pursing any macroeconomic policies.