Classical point of view on depression.

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Answer 1

Question

Chapter 24, Problem 1QE

To determine

Classical point of view on depression.

Expert Solution & Answer

Explanation of Solution

The classical economists’ emphasis the fact that free market leads to an efficient outcome and are self-regulating. They believe that there is wage-price flexibility, which help to maintain full employment in the economy. The classical economists believe that the labor unions have to eliminate; because they prevent the appropriate level of change in wage rate. As a result, the wage rate will reduce and unemployment will decrease, thereby depression will disappear. Thus, the classical economists consider depression as a political problem rather than an economic problem.

Economics Concept Introduction

Unemployment rate: Unemployment rate refers to the percentage of unemployed people to the labor force.

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Students have asked these similar questions

At the 8:10 café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (that is she cannot price discriminate). Students with early classes Students without early classes Coffee 70 60 Banana 50 100 The MC of coffee is 10. The MC of a banana is 40. Is bundling more profitable than selling separately? HINT: if you sell the bundle, can you make more by offering coffee separately? If so, what price should be charged for the bundle? (Show calculations)

Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000. Use the following demand data: Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% `Tweeners $2 10% Seniors $2 10% Others $0 40%

Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000. Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% `Tweeners $2 10% Seniors $2 10% Others $0 40% ur marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000.

Answer 2

Question

Chapter 24, Problem 1QE

To determine

Classical point of view on depression.

Expert Solution & Answer

Explanation of Solution

The classical economists’ emphasis the fact that free market leads to an efficient outcome and are self-regulating. They believe that there is wage-price flexibility, which help to maintain full employment in the economy. The classical economists believe that the labor unions have to eliminate; because they prevent the appropriate level of change in wage rate. As a result, the wage rate will reduce and unemployment will decrease, thereby depression will disappear. Thus, the classical economists consider depression as a political problem rather than an economic problem.

Economics Concept Introduction

Unemployment rate: Unemployment rate refers to the percentage of unemployed people to the labor force.

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Answer 3

Question

Chapter 24, Problem 1QE

To determine

Classical point of view on depression.

Expert Solution & Answer

Explanation of Solution

The classical economists’ emphasis the fact that free market leads to an efficient outcome and are self-regulating. They believe that there is wage-price flexibility, which help to maintain full employment in the economy. The classical economists believe that the labor unions have to eliminate; because they prevent the appropriate level of change in wage rate. As a result, the wage rate will reduce and unemployment will decrease, thereby depression will disappear. Thus, the classical economists consider depression as a political problem rather than an economic problem.

Economics Concept Introduction

Unemployment rate: Unemployment rate refers to the percentage of unemployed people to the labor force.

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Answer 4

Question

Chapter 24, Problem 1QE

To determine

Classical point of view on depression.

Expert Solution & Answer

Explanation of Solution

The classical economists’ emphasis the fact that free market leads to an efficient outcome and are self-regulating. They believe that there is wage-price flexibility, which help to maintain full employment in the economy. The classical economists believe that the labor unions have to eliminate; because they prevent the appropriate level of change in wage rate. As a result, the wage rate will reduce and unemployment will decrease, thereby depression will disappear. Thus, the classical economists consider depression as a political problem rather than an economic problem.

Economics Concept Introduction

Unemployment rate: Unemployment rate refers to the percentage of unemployed people to the labor force.

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

Answer 5

Chapter 24, Problem 1QE

To determine

Classical point of view on depression.

Expert Solution & Answer

Explanation of Solution

The classical economists’ emphasis the fact that free market leads to an efficient outcome and are self-regulating. They believe that there is wage-price flexibility, which help to maintain full employment in the economy. The classical economists believe that the labor unions have to eliminate; because they prevent the appropriate level of change in wage rate. As a result, the wage rate will reduce and unemployment will decrease, thereby depression will disappear. Thus, the classical economists consider depression as a political problem rather than an economic problem.

Economics Concept Introduction

Unemployment rate: Unemployment rate refers to the percentage of unemployed people to the labor force.

Answer 6

Chapter 24, Problem 1QE

To determine

Classical point of view on depression.

Expert Solution & Answer

Explanation of Solution

The classical economists’ emphasis the fact that free market leads to an efficient outcome and are self-regulating. They believe that there is wage-price flexibility, which help to maintain full employment in the economy. The classical economists believe that the labor unions have to eliminate; because they prevent the appropriate level of change in wage rate. As a result, the wage rate will reduce and unemployment will decrease, thereby depression will disappear. Thus, the classical economists consider depression as a political problem rather than an economic problem.

Economics Concept Introduction

Unemployment rate: Unemployment rate refers to the percentage of unemployed people to the labor force.

Answer 7

Chapter 24, Problem 1QE

To determine

Classical point of view on depression.

Answer 8

Expert Solution & Answer

Explanation of Solution

The classical economists’ emphasis the fact that free market leads to an efficient outcome and are self-regulating. They believe that there is wage-price flexibility, which help to maintain full employment in the economy. The classical economists believe that the labor unions have to eliminate; because they prevent the appropriate level of change in wage rate. As a result, the wage rate will reduce and unemployment will decrease, thereby depression will disappear. Thus, the classical economists consider depression as a political problem rather than an economic problem.