In the classical model,
A) unemployment will never exist since workers will be willing to accept lower wages and will then be able to find work.
B) unemployment will never exist because employers will be willing to pay the wage rate demanded by the workers.
C) wages will go up but never go down.
D) full employment will never be reached.
A
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A supply curve shows the relation between the quantity of a good supplied and
A) income. Usually a supply curve has negative slope. B) income. Usually a supply curve has positive slope. C) the price of the good. Usually a supply curve has negative slope. D) the price of the good. Usually a supply curve has positive slope.
From the mainstream perspective, instability in the economy is due to:
A. Price flexibility, and shocks to either aggregate demand or aggregate supply B. Price stickiness, and shocks to either aggregate demand or aggregate supply C. Price flexibility, and government policies and regulation D. Price stickiness, and government policies and regulation