Even when an imbalance occurs, with a certain level of unemployment, it is possible to restore the equilibrium by lowering wages. This naturally leads to an increase in labor demand, which restores the initial equilibrium (Bos 2012). For example, the unemployment rate in China has fallen to just over 4% in recent years. However, high unemployment rates have led to reduced wages and in case employees demand higher wages, there will be many more people filling the available jobs. Salaries in other Asian nations earn up to ten times more than people working in China. This has led to increased profit margins and attracted foreign direct investment as more and more foreign companies begin to operate in China (Zhang, Fan & Haan 2010). Cheng (2013) predicts that capital accumulation in the form of new factories, capital assets, communications systems, and production machinery has contributed to economic growth in China. However, the country's workers were also important in ensuring a strong and lasting increase in productivity, which was the driving force of the economic boom. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essayProductivity gains made from 1979 to 1994 accounted for more than 42% of growth in China, and by the early 1990s had surpassed capital as the most significant source of growth. Equilibrium is also achieved in the event of inequalities between the levels of savings and investments. Reducing the weight of investments on total disposable income minimizes the demand for money and indirectly contributes, given the intention to stimulate it, to a reduction in the interest rate, thus becoming attractive for potential investors who would like to establish market equilibrium. The neoclassical perspective takes up the basic elements of classical theory but offers aspects specific to it. This includes the new vision regarding the value of goods which is determined based on the utility it generates and perceived at the consumer level (Cornelia Mitran & Mihai Ipate 2014). The neoclassical perspective also popularizes the marginal concept, according to which decisions made by economic actors are based on margins. For example, an organization acquires a new staff member based on the expected increase in profits the new worker will bring. Therefore, the neoclassical perspective differs from the classical theory in that it provides an explanation of how essential goods such as food products can be cheap while luxury items are expensive (Coussy 2005).
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