According to the classical economists, how did Says Law, the interest rate mechanism, and downwardly flexible wages

Question:

According to the classical economists, how did Say’s Law, the interest rate mechanism, and downwardly flexible wages and prices ensure that recessions would cure themselves?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics

ISBN: 9780078021800

11th Edition

Authors: Stephen Slavin

See More Books

Question Posted: Nov 26, 2015 01:48 AM

See More Questions

Given the information in Figure 1, and assuming an interest rate of 15 percent: (a) Will the economy be at equilibrium? (b) Will savings equal investment? (c) What will happen, according to the...
Define rational expectations. According to the classical model, what implications do rational expectations have for the ability of the central bank to use monetary policy to smooth business cycles?
The classical economists believed that our economy was always at full employment or tending toward full employment. If our economy were operating below full employment, what would happen, according...
Giant Corporation (a U.S. corporation) forms Small Corporation in a foreign country. Giant owns 70% of Small Corporation's stock and the remaining stock is owned by citizens of the country in which...
Aetna, a major health insurance company, would like to estimate the average wait time for a patient seeking emergency room services. A random sample of 33 emergency room patients had an average wait...
The energy of an RLC circuit decreases by 1.00% during each oscillation when R = 2.00 . If this resistance is removed, the resulting LC circuit oscillates at a frequency of 1.00 kHz. Find the values...
19.18 In setting transfer prices for multinationals, tax considerations can be the tail that wags the dog. Explain.
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for...
Basic EPS 6% bonds pavable Sub Total Options $ Numerator 2403500 166320 2569820 0 2569820 Denominator 506000 105000 611000 11160 622160 $ $ EPS 4.75 421 4.13 SUPPORT
You need to calculate the estimated future availability of a cloud-based IT resource. You determine that only one possible event can occur for the cloud-based IT resource to become unavailable. As a...
In 1980 and in 1999 two major banking laws were passed. Explain how each law affects bank consolidation.
Practical Application: As the last living believer in the crude quantity theory of money, you need to deal with a ruinous annual deflation rate of 10 percent. What simple economic measure would you...
What is the purpose of the $nterms variable? Refer to the PERL script shown in Figures 8.1 and 8.2. C:\Users ex h\Documents\Book SearchForTerms.prl - Notepad++ File Edit Search View Encoding Language...
Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Ramirez Company installs a computerized...
Reproduced below from Farthington Supply s accounting records is the accounts receivable subledger along with selected general ledger accounts. General Ledger Accounts Receivable Dec. 3 1 / 2 2...
James A. and Ella R. Polk, ages 70 and 65, respectively, are retired physicians who live at 3319 Taylorcrest Street, Houston, Texas 77079. Their three adult children (Benjamin Polk, Michael Polk, and...
Required information [The following information applies to the questions displayed below.] Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna...
The following are the ratings of men by women in an experiment involving speed dating. Use the given data to construct a boxplot and identify the 5-number summary. 3.0 3.5 4.0 4.5 5.5 5.5 6.5 6.5 6.5...
Assume that the average consumer in Mexico and the average consumer in the United States buy the quantities and pay the prices indicated in the following table: a. Compute US consumption per person...
Which of the following raises the credibility of areport? Which of the following raises the credibility of a report? Multiple Choice avoiding predictions avoiding the use of cause-effect statements...
Explain why, during a recession, working capital will decline at a slower pace than sales.
In the short run, a firm has two options: _______. a) stay in business or go out of business b) stay in business or shut down c) operate or go out of business d) operate or shut down.
Parkinsons l aw is an example of _______. a) economies of scale b) diseconomies of scale c) Adam Smiths pin factory d) the firms search for its most profitable output.
A firm has a fixed cost of $100,000, and variable cost is $90,000 at an output of one. How much is marginal cost at an output of one? a) $10,000 b) $90,000 c) $100,000 d) $190,000 e) There is...
ABC Insurance Company reported the following information on its accounting statements last year: What was ABC 's expense ratio last year
Calculate the current ratio and the quick ratio for the following partial financial statement for Tootsie Roll Note: Round your answers to the nearest hundredth
Required information Skip to question [ The following information applies to the questions displayed below. ] Golden Corporation's current year income statement, comparative balance sheets, and...

According to the classical economists, how did Says Law, the interest rate mechanism, and downwardly flexible wages

Question:

Step by Step Answer:

Says Law states that supply creates its own demand People who produce ...View the full answer

Economics

Students also viewed these Economics questions