Classical Economists Think General Equilibrium Is Attained Relatively Quickly Because

question 38

Multiple Choice

Classical economists think general equilibrium is attained relatively quickly because

• A)the real interest rate adjusts quickly.
• B)the level of output adjusts quickly.
• C)the real wage rate adjusts quickly.
• D)the price level adjusts quickly.

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Definitions:

Labor

The human effort (physical or mental) contributed to the production of goods and services.

Overhead

Overhead refers to the indirect costs associated with running a business, such as rent, utilities, and administrative expenses, that are not directly tied to the production of goods or services.

Overhead Costs

Indirect expenses related to the day-to-day running of a business, such as rent, utilities, and office supplies, which are not directly tied to production.

Direct Labor Hours

The cumulative hours employees engaged in manufacturing products or delivering services have worked.