Which economist says that money demand interest is flexible?

Which economist says that money demand interest is flexible?

The classical doctrine—that the economy is always at or near the natural level of real GDP—is based on two firmly held beliefs: Say’s Law and the belief that prices, wages, and interest rates are flexible.

What are the evil effects of unemployment?

The personal and social costs of unemployment include severe financial hardship and poverty, debt, homelessness and housing stress, family tensions and breakdown, boredom, alienation, shame and stigma, increased social isolation, crime, erosion of confidence and self-esteem, the atrophying of work skills and ill-health …

Does frictional unemployment indicate that an economy is working poorly?

Frictional unemployment isn’t harmful to an economy. It’s not like cyclical unemployment that results from a recession. That’s when businesses lay off employees, whether they like their jobs or not. An increase in frictional unemployment means more workers are moving toward better positions.

What is the hidden unemployment?

Also known as hidden unemployment, this refers to a situation where labour that is employed in a job is not actually utilised for the production of goods and services. In other words, such employment does not contribute to the output of an economy and is thus akin to a form of unemployment.

What is classical or real wage unemployment?

Classical unemployment occurs when real wages are kept above the market-clearing wage rate, leading to a surplus of labour supplied. Classical unemployment is sometimes known as real wage unemployment because it refers to real wages being too high.

Is frictional unemployment included in unemployment rate?

Frictional unemployment is typically a temporary phenomenon, while structural unemployment can last for years. Structural unemployment is very concerning to economists, while frictional unemployment is considered inevitable and not factored into the unemployment rate.