Question

According to the classical​ model, if an excess quantity of labor is supplied at a particular...

According to the classical​ model, if an excess quantity of labor is supplied at a particular wage​ level, full employment will be maintained because

A. wages will fall rapidly to permit businesses to continue hiring everyone who wants to work.

B. the government will establish special work programs.

C. the government will step in and stimulate spending.

D. the equilibrium wage rate will rise to stimulate spending.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A) The classical economist believed labor market is always equilibrium and demand and supply of labor determines the wage rate

  1. Supply of labor increasing function of wage higher wage higher supply of labors
  2. Demand for labors decreasing the function of wages lowers the wager higher the demand for labors by employers.

The classical economist believes that under the assumption of constant population growth, fall in the wages rate increases the employers to hire labors and at existing wage rate.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question 11 pts It is _____ that in the classical model, prices and wages are fixed;...
Question 11 pts It is _____ that in the classical model, prices and wages are fixed; it is _____ that according to the classical economists, full employment is the norm. true; true false; false false; true true; false Flag this Question Question 21 pts According to classical macroeconomic theory, the flexible interest rate causes investment to move in the opposite direction as savings. will tend to fall when the quantity of credit demanded exceeds the quantity of credit supplied. causes...
[14] A primary conclusion of new classical economics is: A) wages and prices are inflexible downward....
[14] A primary conclusion of new classical economics is: A) wages and prices are inflexible downward. B) there is no short run tradeoff between unemployment and inflation. C) a free market economy can operate at less than full employment for long periods of time. D) government intervention in the economy will be rendered ineffective by the responses of businesses and households to these policies. [15] According to the rational expectations approach, an announcement that interest rates may be raised to...
1. To determine the unemployment rate, each month the government collects data from a survey of...
1. To determine the unemployment rate, each month the government collects data from a survey of about 60,000 households nationwide. collects data from a survey of about 500,000 firms nationwide. conducts a full count of the number of unemployed in each state. records the number of people receiving unemployment compensation. 2. Which of the following best describes the interest rate effect? As the price level rises, less money is demanded, so consumption spending must fall to maintain equality of investment...
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a...
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a balanced budget B. maximum​ employment, stable​ prices, and moderate​ long-term interest rates C. a stable U.S. dollar on foreign exchange markets and moderate​ long-term and​ short-term interest rates D. an economic environment in which investment in U.S. stock and money markets is encouraged The Federal Reserve Act says that the Fed must use​ ______ to achieve its objectives. A. bank reserves B. commercial banks...
Whatever It Takes: How the Fed Aims to Rescue the Economy The central bank is using...
Whatever It Takes: How the Fed Aims to Rescue the Economy The central bank is using tactics from the last financial crisis and deploying new ones to keep money flowing. Here are the basics. The Federal Reserve, under Jerome H. Powell, is moving to shore up the American economy during the coronavirus pandemic. Credit...Yuri Gripas/Reuters By Ben Casselman March 23, 2020 The Federal Reserve on Monday pledged to do, in essence, whatever it takes to keep the economy from collapsing...
The crowding out effect is zero if Select one: a. the LM-curve is vertical b. the...
The crowding out effect is zero if Select one: a. the LM-curve is vertical b. the central bank conducts open market sales following fiscal expansion c. income is stimulated via a tax cut rather than an increase in government spending d. the central bank conducts open market purchases following fiscal expansion e. the LM-curve is horizontal An asset (other than money) is considered to be more liquid if Select one: a. it can be quickly and cheaply transferred into money...
Read the NY Fed's section and write a memo summarizing the details of the report. Summary...
Read the NY Fed's section and write a memo summarizing the details of the report. Summary of Economic Activity Economic activity in the Second District continued to grow at a moderate pace in the latest reporting period, and the labor market has remained tight. Input prices increased at a slightly faster pace, while selling prices continued to rise modestly. Fairly robust growth was reported in most service and distribution industries. Manufacturers reported that growth has slowed somewhat from its rapid...
I need to answer the questions based on the following article The article is Although the...
I need to answer the questions based on the following article The article is Although the virus has delayed the budget until October, Treasurer Josh Frydenberg will deliver an update on the budget and – more importantly – the economy, within the next fortnight. But last week the secretary to the Treasury dropped some big hints on what to expect. In evidence to the Senate committee inquiring into the response to the virus, Dr Steven Kennedy started with the outlook...
Question: Assuming that a vaccine is discovered in say 18 months, discuss what might have happened...
Question: Assuming that a vaccine is discovered in say 18 months, discuss what might have happened to the LRAS curve over the period of the COVID crisis. Although the virus has delayed the budget until October …. last week the secretary to the Treasury dropped some big hints on what to expect. In evidence to the Senate committee inquiring into the response to the virus, Dr Steven Kennedy started with the outlook for the labour market. The latest figures from...
Amazon CEO Jeff Bezos’ 2020 letter to shareholders details the company’s plans to combat the coronavirus...
Amazon CEO Jeff Bezos’ 2020 letter to shareholders details the company’s plans to combat the coronavirus Amazon CEO Jeff Bezos just published his annual letter to shareholders, and the efforts his company is taking to address the COVID-19 crisis were front and center. He outlined the company’s plans to build a lab to test employees and the social distancing measures its implemented in its facilities among other initiatives. Other than the coronavirus pandemic, Bezos also discussed the retail giant’s efforts...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT