The classical view of economics describes how 1) increases in the wage rate cause unemployment 2)...
The classical view of economics describes how
1) increases in the wage rate cause unemployment
2) sticky prices create profit opportunities for firms in the short run
3) prices and wages adjust immediately to clear markets
4) changes in technology or resource endowments can shift the economy's level of full employment
Classical economics flourished in 18th century England was lead by scholars such as Adam Smith, John Stuart Mill, and David Ricardo. The school of thought is mostly free market and uninhibited trade.
Answer and Explanation: 1
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4) Changes in technology or resource endowments can shift the economy's level of full employment. Classical economics is generally free market and...
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fromChapter 60 / Lesson 1
Economic models are used by economists to describe capitalist economies. Explore economic models, discover details about the classical and Keynesian models, and learn about the differences between these models.
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