According to ________ models, the level of employment is determined primarily by prices and wages.
A) Keynesian
B) Marxist
C) Classical
D) command system

Question

Quizplus · Accepted Answer

Classical economics holds the belief that the level of employment is primarily determined by the interaction of supply and demand in the labor market. In this view, wages and prices adjust to equate the supply and demand for labor, leading to a market-clearing level of employment. This is in contrast to Keynesian economics, which emphasizes the role of aggregate demand, and Marxist economics, which emphasizes the role of power dynamics and exploitation in the labor market. The command system is a type of economic organization in which a central authority allocates resources and sets production goals, and is not directly related to the question of employment levels.

According to ________ Models, the Level of Employment Is Determined