According to classical economists, the increase in unemployment in recessions is caused by
A) slack aggregate demand.
B) the failure of wages to adjust to restore equilibrium in the labor market.
C) the power of labor unions, which prevent firms from cutting wages.
D) a mismatch of workers and jobs.
D
Economics
You might also like to view...
Does the Federal Reserve conduct both the nation's monetary policy and its fiscal policy?
What will be an ideal response?
Economics
A decrease in the supply of dollars on the foreign exchange market, all else equal, will result in:
A) appreciation of the U.S. dollar and depreciation of the foreign currency. B) appreciation of the U.S. dollar and appreciation of the foreign currency. C) depreciation of the U.S. dollar and depreciation of the foreign currency. D) depreciation of the U.S. dollar and appreciation of the foreign currency.
Economics