Price Rigidity Requires Government

Price Rigidity Requires Government

 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? 

Looking for competent nursing writers for your nursing and medical related classes? Trust ONLY competent nursing writers to handle your writing tasks.
All tasks are done from scratch and we guarantee 100% confidentiality. Order now for15% discount on your first order with us

Use the following coupon
"SAVE15"

Order Now