The position of Keynes and classical school about wages, prices, and Say’s law of market.

Question

Want to see more full solutions like this?

Answer 1

Question

100%

Chapter 10, Problem 1QP

To determine

The position of Keynes and classical school about wages, prices, and Say’s law of market.

Expert Solution & Answer

Explanation of Solution

According to the classical economists, the economy is always self regulating and does not need any intervention of the government to control its activities other than providing military support. Thus, they demanded the Laissez-Faire economy where the economic transactions of the economy are free from the government regulations, tariffs, and interventions. Thus, the wages and prices are freely flexible under the classical ideology and Say's law of market states that the supply always creates its own demand leading to equilibrium between the demand and supply.

However, according to Keynes, the economy should not be allowed to freely fluctuate the prices and wages, as it will take long years to derive a new equilibrium as well as the money market will not allow Say’s law of market to hold true for the economy. The money acts as a medium of exchange as well as a medium of storage and differed payments, which cause the demand to fall and the savings to increase. This might lead to Say’s law of market to become false and there should be a regulatory to regulate and lead the economy toward equilibrium condition as soon as possible.

Thus, the classical economists argued for the Laissez-faire economy with the strong power to Say’s law market, whereas the Keynes does the inverse.

Economics Concept Introduction

GDP: The GDP is the gross domestic product of an economy, which is the summation of money value of all the goods and services produced within the domestic boundary of the economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

5. Discrimination in the labor market The following table exhibits the name, gender, height, and minimum wage 10 people are willing to accept to work as travel nurses at a regional hospital. Name Gender Height Minimum Wage (Inches) (Dollars per week) Cho F 65 $297 Frances F 64 $316 Latasha F 68 $336 Dmitri M 70 $355 Jake M 71 $374 Rosa F 65 $393 Nick M 72 $420 Brian M 71 $439 Tim M 66 $451 Alyssa F 68 $478 The lowest weekly wage that the hospital can spend in order to hire five travel nurses is ________. Suppose the hiring director of the hospital prefers taller candidates because they think it will increase revenue, and so they impose a requirement that all newly hired travel nurses must have a height of at least 68 inches. With this mandate in place, the weekly wage rate the hospital now must pay in order to hire five travel nurses increases by ________.

5. Discrimination in the labor market The following table exhibits the name, gender, height, and minimum wage 10 people are willing to accept to work as human resource specialists at a large financial firm. Name Gender Height Minimum Wage (Inches) (Dollars per week) Paolo M 67 $298 Ginny F 63 $311 Lucia F 66 $332 Eric M 71 $354 Kenji M 69 $375 Sharon F 66 $397 Paolo M 70 $411 Carlos M 70 $440 Van M 64 $452 Amy F 69 $474 The lowest weekly wage that the financial firm can spend in order to hire five human resource specialists is____. Suppose the hiring director of the financial firm prefers taller candidates because they think it will increase revenue, and so they impose a requirement that all newly hired human resource specialists must have a height of at least 67 inches. With this mandate in place, the weekly wage rate the financial firm now must pay in order to hire five human resource specialists increases by_____.

not use ai please

Answer 2

Question

100%

Chapter 10, Problem 1QP

To determine

The position of Keynes and classical school about wages, prices, and Say’s law of market.

Expert Solution & Answer

Explanation of Solution

According to the classical economists, the economy is always self regulating and does not need any intervention of the government to control its activities other than providing military support. Thus, they demanded the Laissez-Faire economy where the economic transactions of the economy are free from the government regulations, tariffs, and interventions. Thus, the wages and prices are freely flexible under the classical ideology and Say's law of market states that the supply always creates its own demand leading to equilibrium between the demand and supply.

However, according to Keynes, the economy should not be allowed to freely fluctuate the prices and wages, as it will take long years to derive a new equilibrium as well as the money market will not allow Say’s law of market to hold true for the economy. The money acts as a medium of exchange as well as a medium of storage and differed payments, which cause the demand to fall and the savings to increase. This might lead to Say’s law of market to become false and there should be a regulatory to regulate and lead the economy toward equilibrium condition as soon as possible.

Thus, the classical economists argued for the Laissez-faire economy with the strong power to Say’s law market, whereas the Keynes does the inverse.

Economics Concept Introduction

GDP: The GDP is the gross domestic product of an economy, which is the summation of money value of all the goods and services produced within the domestic boundary of the economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

100%

Chapter 10, Problem 1QP

To determine

The position of Keynes and classical school about wages, prices, and Say’s law of market.

Expert Solution & Answer

Explanation of Solution

According to the classical economists, the economy is always self regulating and does not need any intervention of the government to control its activities other than providing military support. Thus, they demanded the Laissez-Faire economy where the economic transactions of the economy are free from the government regulations, tariffs, and interventions. Thus, the wages and prices are freely flexible under the classical ideology and Say's law of market states that the supply always creates its own demand leading to equilibrium between the demand and supply.

However, according to Keynes, the economy should not be allowed to freely fluctuate the prices and wages, as it will take long years to derive a new equilibrium as well as the money market will not allow Say’s law of market to hold true for the economy. The money acts as a medium of exchange as well as a medium of storage and differed payments, which cause the demand to fall and the savings to increase. This might lead to Say’s law of market to become false and there should be a regulatory to regulate and lead the economy toward equilibrium condition as soon as possible.

Thus, the classical economists argued for the Laissez-faire economy with the strong power to Say’s law market, whereas the Keynes does the inverse.

Economics Concept Introduction

GDP: The GDP is the gross domestic product of an economy, which is the summation of money value of all the goods and services produced within the domestic boundary of the economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

100%

Chapter 10, Problem 1QP

To determine

The position of Keynes and classical school about wages, prices, and Say’s law of market.

Expert Solution & Answer

Explanation of Solution

According to the classical economists, the economy is always self regulating and does not need any intervention of the government to control its activities other than providing military support. Thus, they demanded the Laissez-Faire economy where the economic transactions of the economy are free from the government regulations, tariffs, and interventions. Thus, the wages and prices are freely flexible under the classical ideology and Say's law of market states that the supply always creates its own demand leading to equilibrium between the demand and supply.

However, according to Keynes, the economy should not be allowed to freely fluctuate the prices and wages, as it will take long years to derive a new equilibrium as well as the money market will not allow Say’s law of market to hold true for the economy. The money acts as a medium of exchange as well as a medium of storage and differed payments, which cause the demand to fall and the savings to increase. This might lead to Say’s law of market to become false and there should be a regulatory to regulate and lead the economy toward equilibrium condition as soon as possible.

Thus, the classical economists argued for the Laissez-faire economy with the strong power to Say’s law market, whereas the Keynes does the inverse.

Economics Concept Introduction

GDP: The GDP is the gross domestic product of an economy, which is the summation of money value of all the goods and services produced within the domestic boundary of the economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Question

100%

Answer 6

Question

100%

Answer 7

Chapter 10, Problem 1QP

To determine

The position of Keynes and classical school about wages, prices, and Say’s law of market.

Expert Solution & Answer

Explanation of Solution

According to the classical economists, the economy is always self regulating and does not need any intervention of the government to control its activities other than providing military support. Thus, they demanded the Laissez-Faire economy where the economic transactions of the economy are free from the government regulations, tariffs, and interventions. Thus, the wages and prices are freely flexible under the classical ideology and Say's law of market states that the supply always creates its own demand leading to equilibrium between the demand and supply.

However, according to Keynes, the economy should not be allowed to freely fluctuate the prices and wages, as it will take long years to derive a new equilibrium as well as the money market will not allow Say’s law of market to hold true for the economy. The money acts as a medium of exchange as well as a medium of storage and differed payments, which cause the demand to fall and the savings to increase. This might lead to Say’s law of market to become false and there should be a regulatory to regulate and lead the economy toward equilibrium condition as soon as possible.

Thus, the classical economists argued for the Laissez-faire economy with the strong power to Say’s law market, whereas the Keynes does the inverse.

Economics Concept Introduction

GDP: The GDP is the gross domestic product of an economy, which is the summation of money value of all the goods and services produced within the domestic boundary of the economy.

Answer 8

Chapter 10, Problem 1QP

To determine

The position of Keynes and classical school about wages, prices, and Say’s law of market.

Expert Solution & Answer

Explanation of Solution

According to the classical economists, the economy is always self regulating and does not need any intervention of the government to control its activities other than providing military support. Thus, they demanded the Laissez-Faire economy where the economic transactions of the economy are free from the government regulations, tariffs, and interventions. Thus, the wages and prices are freely flexible under the classical ideology and Say's law of market states that the supply always creates its own demand leading to equilibrium between the demand and supply.

However, according to Keynes, the economy should not be allowed to freely fluctuate the prices and wages, as it will take long years to derive a new equilibrium as well as the money market will not allow Say’s law of market to hold true for the economy. The money acts as a medium of exchange as well as a medium of storage and differed payments, which cause the demand to fall and the savings to increase. This might lead to Say’s law of market to become false and there should be a regulatory to regulate and lead the economy toward equilibrium condition as soon as possible.

Thus, the classical economists argued for the Laissez-faire economy with the strong power to Say’s law market, whereas the Keynes does the inverse.

Economics Concept Introduction

GDP: The GDP is the gross domestic product of an economy, which is the summation of money value of all the goods and services produced within the domestic boundary of the economy.

Answer 9

Chapter 10, Problem 1QP

To determine

The position of Keynes and classical school about wages, prices, and Say’s law of market.

Answer 10

Expert Solution & Answer

Explanation of Solution

According to the classical economists, the economy is always self regulating and does not need any intervention of the government to control its activities other than providing military support. Thus, they demanded the Laissez-Faire economy where the economic transactions of the economy are free from the government regulations, tariffs, and interventions. Thus, the wages and prices are freely flexible under the classical ideology and Say's law of market states that the supply always creates its own demand leading to equilibrium between the demand and supply.

However, according to Keynes, the economy should not be allowed to freely fluctuate the prices and wages, as it will take long years to derive a new equilibrium as well as the money market will not allow Say’s law of market to hold true for the economy. The money acts as a medium of exchange as well as a medium of storage and differed payments, which cause the demand to fall and the savings to increase. This might lead to Say’s law of market to become false and there should be a regulatory to regulate and lead the economy toward equilibrium condition as soon as possible.

Thus, the classical economists argued for the Laissez-faire economy with the strong power to Say’s law market, whereas the Keynes does the inverse.

Answer 11

Expert Solution & Answer

Answer 12

Expert Solution & Answer

Answer 13

Economics Concept Introduction

GDP: The GDP is the gross domestic product of an economy, which is the summation of money value of all the goods and services produced within the domestic boundary of the economy.

Answer 14

Ch. 10.1 - Prob. 1ST Ch. 10.1 - Prob. 2ST Ch. 10.1 - Prob. 3ST Ch. 10.2 - Prob. 1ST Ch. 10.2 - Prob. 2ST Ch. 10.2 - Prob. 3ST Ch. 10.3 - Prob. 1ST Ch. 10.3 - Prob. 2ST Ch. 10.3 - Prob. 3ST Ch. 10.4 - Prob. 1ST

The position of Keynes and classical school about wages, prices, and Say’s law of market.

Solution Summary: The author explains the position of Keynes and classical school about wages, prices, and Say's law of market. The classical economists argued for the Laissez-Faire economy where the economic transactions of the economy are free

The position of Keynes and classical school about wages, prices, and Say’s law of market.

Explanation of Solution

Want to see more full solutions like this?

Chapter 10 Solutions