In the classical model, a basic theoretical feature of self-regulating markets was that
a. unsold inventory and labor unemployment would cause prices and wages to increase.
b. lower wages and prices would eliminate unemployment and unsold inventory.
c. unsold inventory would never occur.
d. an increase in planned saving would cause an increase in the interest rate and a decrease in investment.
b. lower wages and prices would eliminate unemployment and unsold inventory.
You might also like to view...
Water from the Mississippi river is an example of
A) a nonrenewable natural resource. B) a renewable natural resource. C) capital. D) a static resource.
If an economy has to sacrifice increasing amounts of good X for each additional unit of good Y produced, then its production possibilities curve is:
A) bowed out from the origin. B) bowed in toward the origin. C) a straight line. D) a vertical line.