one of the tenets of the classical view of the labor market is that the wage adjustments that are necessary to clear the labor market occur ?
Correct answer: A. quickly
- A. quickly
- B. slowly
- C. very infrequently
- D. instantly
Explanation
The classical view assumes wages are flexible, so wage adjustments occur quickly enough to eliminate excess demand or supply in the labour market. 'Instantly' is stronger than the usual claim and is not required.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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