Classical point of view on depression.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 6, Problem 1QE

To determine

Classical point of view on depression.

Expert Solution & Answer

Explanation of Solution

The classical economists’ emphasis the fact that free market leads to an efficient outcome and are self-regulating. They believe that there is wage-price flexibility, which help to maintain full employment in the economy. The classical economists believe that the labor unions have to eliminate; because they prevent the appropriate level of change in wage rate. As a result, the wage rate will reduce and unemployment will decrease, thereby depression will disappear. Thus, the classical economists consider depression as a political problem rather than an economic problem.

Economics Concept Introduction

Unemployment rate: Unemployment rate refers to the percentage of unemployed people to the labor force.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Why governments / decision makers try to achieve the stable economic growth and lower inflation? Evaluate the macroeconomic measures, employing fiscal and/or monetary policies, which could be taken to balance these two objectives.

What percentage of the economy was the of the economy was the Federal Government responsible for in 1920? Today?

Which federal policies have contributed to these trends?

Answer 2

Question

Chapter 6, Problem 1QE

To determine

Classical point of view on depression.

Expert Solution & Answer

Explanation of Solution

The classical economists’ emphasis the fact that free market leads to an efficient outcome and are self-regulating. They believe that there is wage-price flexibility, which help to maintain full employment in the economy. The classical economists believe that the labor unions have to eliminate; because they prevent the appropriate level of change in wage rate. As a result, the wage rate will reduce and unemployment will decrease, thereby depression will disappear. Thus, the classical economists consider depression as a political problem rather than an economic problem.

Economics Concept Introduction

Unemployment rate: Unemployment rate refers to the percentage of unemployed people to the labor force.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 6, Problem 1QE

To determine

Classical point of view on depression.

Expert Solution & Answer

Explanation of Solution

The classical economists’ emphasis the fact that free market leads to an efficient outcome and are self-regulating. They believe that there is wage-price flexibility, which help to maintain full employment in the economy. The classical economists believe that the labor unions have to eliminate; because they prevent the appropriate level of change in wage rate. As a result, the wage rate will reduce and unemployment will decrease, thereby depression will disappear. Thus, the classical economists consider depression as a political problem rather than an economic problem.

Economics Concept Introduction

Unemployment rate: Unemployment rate refers to the percentage of unemployed people to the labor force.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 1QE

To determine

Classical point of view on depression.

Expert Solution & Answer

Explanation of Solution

The classical economists’ emphasis the fact that free market leads to an efficient outcome and are self-regulating. They believe that there is wage-price flexibility, which help to maintain full employment in the economy. The classical economists believe that the labor unions have to eliminate; because they prevent the appropriate level of change in wage rate. As a result, the wage rate will reduce and unemployment will decrease, thereby depression will disappear. Thus, the classical economists consider depression as a political problem rather than an economic problem.

Economics Concept Introduction

Unemployment rate: Unemployment rate refers to the percentage of unemployed people to the labor force.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 1QE

To determine

Classical point of view on depression.

Expert Solution & Answer

Explanation of Solution

The classical economists’ emphasis the fact that free market leads to an efficient outcome and are self-regulating. They believe that there is wage-price flexibility, which help to maintain full employment in the economy. The classical economists believe that the labor unions have to eliminate; because they prevent the appropriate level of change in wage rate. As a result, the wage rate will reduce and unemployment will decrease, thereby depression will disappear. Thus, the classical economists consider depression as a political problem rather than an economic problem.

Economics Concept Introduction

Unemployment rate: Unemployment rate refers to the percentage of unemployed people to the labor force.

Answer 6

Chapter 6, Problem 1QE

To determine

Classical point of view on depression.

Expert Solution & Answer

Explanation of Solution

The classical economists’ emphasis the fact that free market leads to an efficient outcome and are self-regulating. They believe that there is wage-price flexibility, which help to maintain full employment in the economy. The classical economists believe that the labor unions have to eliminate; because they prevent the appropriate level of change in wage rate. As a result, the wage rate will reduce and unemployment will decrease, thereby depression will disappear. Thus, the classical economists consider depression as a political problem rather than an economic problem.

Economics Concept Introduction

Unemployment rate: Unemployment rate refers to the percentage of unemployed people to the labor force.

Answer 7

Chapter 6, Problem 1QE

To determine

Classical point of view on depression.

Answer 8

Expert Solution & Answer

Explanation of Solution

The classical economists’ emphasis the fact that free market leads to an efficient outcome and are self-regulating. They believe that there is wage-price flexibility, which help to maintain full employment in the economy. The classical economists believe that the labor unions have to eliminate; because they prevent the appropriate level of change in wage rate. As a result, the wage rate will reduce and unemployment will decrease, thereby depression will disappear. Thus, the classical economists consider depression as a political problem rather than an economic problem.