Classical economists suggest that unemployment is a short-lived phenomenon because
A. wages adjust quickly to equilibrate quantity of labor demanded with quantity of labor supplied.
B. wages remain unchanged when the quantity of labor supplied exceeds the quantity of labor demanded.
C. wages remain unchanged when the quantity of labor demanded exceeds the quantity of labor supplied.
D. wages tend to rise slowly when the quantity of labor demanded equals the quantity of labor supplied.
Answer: A
You might also like to view...
Economists refer to this pattern, the ___________________________________, which means that as a person receives more of a good, the additional or marginal utility from each additional unit of the good declines.
A. law of trade-offs B. law of diminishing marginal utility C. production possibilities frontier D. law of increasing marginal utility
The price indexes that are alternatives to the CPI are ________.
A) unbiased CPI and the unbiased GDP deflator B) the GDP deflator and the chained price index for consumption C) the chained price index for consumption and the CPI deflator D) the core GDP deflator and the CPI deflator E) the GDP deflator and the CPI deflator
There is a surplus in a market for a product when:
a. The increase in demand is greater than the decrease in supply b. Quantity supplied is less than quantity demanded c. Quantity demanded is less than quantity supplied d. The decrease in supply is greater than the increase in demand
Which of the following would an economist classify as capital?
A. a post office employee B. a $50 bill C. a corporate bond D. a guitar used by a musician