Why is there NO persistent unemployment in the classical model?
A) Unionization creates job security for workers.
B) The wage level adjusts to eliminate unemployment.
C) The interest rate adjusts to eliminate unemployment.
D) The rate of economic growth is always high enough to allow those who want to work at current wages to find jobs.
B
You might also like to view...
An appreciation of the U.S. dollar relative to the Japanese yen causes
A) a lower dollar-price of Japanese goods which induces the U.S. to increase their purchasing of Japanese goods. B) the quantity demanded of U.S. dollars to increase because the Japanese want to buy more U.S. goods. C) the Japanese to buy more U.S. goods, causing the dollars to appreciate further. D) the U.S. to buy less Japanese goods, causing the U.S. to depreciate.
Which of the following is true?
a. both b and c b. the U.S. capital account records international transactions involving purchases of investments c. the U.S. capital account records international transactions involving sales of investments d. U.S. capital refers to the export of real capital only e. U.S. capital outflows result when foreigners purchase U.S. assets