According to the classical model
A) long-term unemployment is unavoidable.
B) unemployment is a temporary phenomenon.
C) unemployment only exists during periods of war.
D) the natural rate of unemployment is zero.
B
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How do rational expectations models differ from traditional classical economics? How does the new Keynesian model differ from the traditional Keynesian view?
What will be an ideal response?
Trade between two parties is beneficial because:
a. it ensures that the standard of living in the poorer country matches its trading partner eventually. b. it enables each to consume a bundle of goods that it cannot produced domestically. c. it has an immediate effect on an economy by increasing its production set. d. it allows the economy of both trading partners to grow equally.
The line of perfect income equality is
A. X.
B. Y.
C. Z.
D. not shown on this graph.
Which of the following central banks does not have an explicit inflation target?
a. The Bank of England b. The Federal Reserve c. Swiss National Bank d. European Central Bank