Classical economists used the demand and supply model to explain the real wage rate, employment and...

Classical economists used the demand and supply model to explain the real wage rate, employment and unemployment. Explain how the classical economist reached the conclusion that the labor market self corrects, and, therefore, involuntary unemployment must be a consequence of rigidities with respect to nominal price (changes in the price goods) shocks or real wage rigidities. Use graph(s) to facilitate your analysis.

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Rahul Sunny answered 1 year ago

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