Econ 202 essay
Classical economists consider that costs and portions modify to the adjustments within the forces of provide and demand and that the economic system produces its potential output in the long term. Quite the opposite, Keynesian economists consider due to worth and wage rigidities the economic system's equilibrium output in the long term could also be lower than its potential output. What's price-wage rigidity? Do you agree with Keynes evaluation that wage-price rigidity requires authorities's involvement within the markets? Why? Why not?.---Classical economics consider that costs and portions react to adjustments in provide and demand components over time, and that the economic system ultimately produces its full potential output. Quite the opposite, Keynesian economists argue that, in the long term, the economic system's equilibrium output could also be lower than its potential output on account of worth and wage rigidities. What precisely is wage-price rigidity? Do you agree with Keynes' conclusion that wage-price rigidity necessitates authorities intervention out there? Why? What's to cease you?