What does neoclassical economics claim to be doing and why?

In general, Neoclassical economists have modernized the views of Adam Smith. Their assumptions are that individuals and business firms make rational choices based on their self-interest and that choices are made based on past and future information. That means that the activist Keynesian view of economics is not necessary because the economy is self-adjusting as Adam Smith had insisted in the past. They hold that view and prescribe a non-activist view of interference in the economy by government.

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