According to classical economists, excessive unemployment does not persist in the economy because
A. the labor demand does not change in the economy.
B. the labor supply does not change in the economy.
C. interest rates always change to insure equilibrium in the money market.
D. wages will always adjust to ensure equilibrium in the labor market.
Answer: D
You might also like to view...
Because labor unions contribute to keeping real wages ________ their equilibrium levels, higher unionization rates will tend to contribute to ________ unemployment rates
A) above; higher B) above; lower C) below; higher D) below; lower
Elizabeth's opportunity cost of selling a widget is $18, while Jess values it at $27 . Identify the correct statement from the following
a. Jess can threaten to go to another seller if the transaction benefits Elizabeth more than her. b. The core is of the zone of agreement. c. The core consists of prices above $27, which benefits both parties. d. Elizabeth can threaten to go to another seller if the transaction benefits Jess more than her.
Contrast the circumstances in which economists prefer monetary policy and those in which they prefer fiscal policy for stabilization and explain why they hold these preferences.
What will be an ideal response?
The Securities and Exchange Commission (SEC) oversees the regulation of the securities market
a. True b. False Indicate whether the statement is true or false