According to classical theory, full employment in the labor market occurs
A) only when actual expenditures are greater than desired expenditures.
B) only when the economy has just experienced a demand shock.
C) whenever aggregate demand is less than aggregate supply.
D) at a wage rate at which quantity demanded equals quantity supplied.
D
Economics
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A demand curve that is horizontal indicates that the commodity
A) has few substitutes. B) must be very cheap. C) has a large number of substitutes. D) is a necessity.
Economics
Based on our understanding of the labor market model presented in Chapter 6, we know that an increase in the minimum wage will cause
A) an increase in the equilibrium real wage. B) a reduction in the equilibrium real wage. C) a reduction in the natural rate of unemployment. D) both B and C
Economics