What is price-wage rigidity

Assignment Help Business Management
Reference no: EM132606020

Classical economists belief that prices and quantities adjust to the changes in the forces of supply and demand and that the economy produces its potential output in the long run. On the contrary, Keynesian economists believe because of price and wage rigidities the economy's equilibrium output in the long run may be less than its potential output.

What is price-wage rigidity? Do you agree with Keynes assessment that wage-price rigidity requires government's involvement in the markets? Why? Why not?

Reference no: EM132606020

Questions Cloud

What are the total expenses on the income statement on may : On April 28, Carpenter Printing signed a 1 year rental contract for office space, What are the Total Expenses on the Income Statement on May 31?
What are competitive market outputs of x and y : What outputs X and Y would maximize the sum of the profits of these two firms? Assume the two firms were run by the same management.
Impact of supply chain management and organization theory : The impact of supply chain management and organization theory in the successful pursuit of company objectives - focus on the one part of GOOGLE Company
What is the total revenue on the income statement on june : On June 12, Carpenter Printing printed $17,712 in magazines for the Pierre Company. What is the Total Revenue on the Income Statement on June 30?
What is price-wage rigidity : What is price-wage rigidity? Do you agree with Keynes assessment that wage-price rigidity requires government's involvement in the markets?
How do prepare a statement of retained earnings : Prepare the journal entry to correct the error?On July 9, 2021, Sheridan Enterprises Inc. discovered it had recorded the $70,000 purchase of land
Would you have supported such a proposal and why : In 2 0 1 1 , Congress debated the wisdom of reducing the federal deficit by a total of $ 4 trillion by the year 2 0 2 1
What elements of a national health insurance system : What elements of a national health insurance system could lead to thissituation and how could this be remedied?
Disadvantage to a national health insurance system : One disadvantage to a national health insurance system such as Canada's is that of"queuing"-people often need to wait long periods

Reviews

Write a Review

Business Management Questions & Answers

  What is the appropriate cost of common equity

What is the appropriate cost of common equity in determining the firm's cost of capital?

  Maintain competitive advantage increases

Teams have been used in organizations for many years. As the need to streamline operations to gain or maintain competitive advantage increases

  Sue kong the systems analyst has made important progress in

sue kong the systems analyst has made important progress in understanding the data movement at shanghai megabank. to

  Identify the optimal solution point on graph

a. Use a graph to show each constraint and the feasible region. b. Identify the optimal solution point on your graph. What are the values of X and Y

  Solve the social security problem

Play the Social Security Game (links to an external site) to solve the Social Security problem. Detail your choices, noting the why's of your choices and also discuss the effects on the stability of employment, inflation, and GDP as a result.

  How do you take notes with the required speed

How do you take notes with the required speed and accuracy which reflects a true and accurate account of the meeting?

  Discuss what constitutes good and bad parenting

Discuss what constitutes good and bad parenting. What are some examples from your childhood that you think were examples of good and bad parenting?

  Determine the tax consequences of the sale

Determine the tax consequences of the sale of the land.

  The purpose and importance of service area competitor

Examine the purpose and importance of service area competitor analysis

  Explain the environmental situation in india

Sustainable development is focused on three priorities: 1) maintaining the ecological system; 2) providing for the sustainable use of resources; and, 3) maintaining biodiversity (Griffiths, O'Callaghan and Roach 2008).

  Define and argue a business case to justify a new product

Assessment Task: Marketing Report - Briefly analyse the external and internal environments (SWOT) and Identify a relevant strength, opportunity - Identify and describe a target market - Develop a suitable new product for the company to introduce for ..

  Components of the search for competitive advantage

Why innovation and product development are crucial components of the search for competitive advantage?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd