Flashcards in Quiz 6 Deck (10):
Classical economists believe people make employment decisions based on their ______ wage.
The Classical word for equilibrium is:
Say's Law says that income is created by sales, regardless of the time difference between production and sale of a good.
The classical word for recession is:
For Classical economics to work, wages must be completely flexible, both up and down.
In Classical economics, savings always equal investment.
In the Classical world, interest rates are determined by:
savings and investment
In the Classical world, inflation is caused by:
too much money in the economy
Classical economics was the dominant theory in economics from Adam Smith until:
the Great Depression