In the classical view, if employers could pay lower wages, they could then lower their prices and as a result see their sales increase. -true 5) In the classical view, governments will regulate the interest rates in order to ensure that the level of savings equals the level of borrowing -false 6) According to Say’s Law, jobs are created when sellers produce more output, so sellers should be supported and encouraged in this view with favorable government policy. -true
In the classical view, if employers could pay lower wages, they could then lower their prices and as a result see their sales increase. -true 5) In the classical view, governments will regulate the interest rates in order to ensure that the level of savings equals the level of borrowing -false 6) According to Say’s Law, jobs are created when sellers produce more output, so sellers should be supported and encouraged in this view with favorable government policy. -true
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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4) In the classical view, if employers could pay lower wages, they could then lower their
5) In the classical view, governments will regulate the interest rates in order to ensure that the level of savings equals the level of borrowing -false
6) According to Say’s Law, jobs are created when sellers produce more output, so sellers should be supported and encouraged in this view with favorable government policy. -true
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