Categories of unemployment include frictional unemployment, structural unemployment, cyclical unemployment, discouraged workers, and the underemployed

The law of diminishing returns states that as a firm increases

A) all the inputs is uses, the marginal product of each of these inputs always decreases. B) a variable input, with a given quantity of fixed inputs, the firm's marginal cost eventually decreases. C) a variable input, with a given quantity of fixed inputs, the marginal product of the variable input eventually decreases. D) a variable input, given the quantity of fixed inputs, the firm's average total cost will eventually decrease.

Which of the following real-world phenomena does the classical model ignore?

a. Frictional unemployment b. Inflation c. Real output growth d. Cyclical unemployment e. Structural unemployment