Introduction to Economics 2 Deneme Sınavı Sorusu #349575

In which model in the equilibrium approach, the economy is in constant balance?


Macroeconomic

 

Keynesian

 

Classical

 

Microeconomic

Expenditure


Yanıt Açıklaması:

In the equilibrium approach of the Classical model, thanks to the smooth operation of the market mechanism, the economy is in constant balance, that is, at full employment. The classical model explains the continuous realization of employment in the economy, based on Say’s Law, which states that “every supply creates its own demand”. According to this law, a certain amount of income is generated as a result of the production of goods and services.

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