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On which concept does classical viewpoint depend?
Say’s Law of Market
perfect Flexibility of Wage Rate
Perfect Flexibility of Interest Rate
All of these
- Say’s Law of Market: This principle asserts that supply creates its own demand. It implies that production will inherently generate enough income to purchase what is produced.
- Perfect Flexibility of Wage Rate: This concept suggests that wages adjust freely and instantly to changes in labor market conditions. It helps maintain full employment in the economy.
- Perfect Flexibility of Interest Rate: This idea implies that interest rates readily adjust to changes in savings and investment, facilitating a balance between the two.
- All of these: The classical viewpoint depends on all the above concepts to ensure self-regulating and efficient markets.
Correct Answer: Option 4 - All of these
By: santosh ProfileResourcesReport error
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