In the classical view of the labor market, it is implied that unemployment does not exist.

An unexpected exogenous event which has a significant impact on an important sector of the economy or on the economy as a whole is called a(n)

A) macroeconomic shock. B) countercyclical fluctuation. C) downward economic spiral. D) autonomous destabilizer.

Purchasing power parity suggests that

a. Given fixed prices, interest rates adjust so that a good costs the same across two countries b. Given fixed exchange rates, prices adjust such that a good costs the same across two countries c. All of the above d. None of the above