Economics

The real-balance effect indicates that at higher price levels A) the

The real-balance effect indicates that at higher price levels A) the real value of money holdings increase, resulting in increased saving. B) the purchasing power of money will increase. C) the real value of money holdings fall, resulting in decreased spending. D) the value of the dollar will increase.   ANSWER C

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Date: September 2nd, 2020

Why did the classical economists think that large-scale unemployment w

Why did the classical economists think that large-scale unemployment was not possible in a market economy? What will be an ideal response?   ANSWER The classical economists accepted Say’s law, which indicated that desired expenditures will equal actual expenditures. The act of producing indicates one wants to buy other goods. A surplus or shortage in […]

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Date: September 2nd, 2020