Which of the following is a central argument of non-market-clearing theories of unemployment?
A) Labour markets will clear and unemployment will thereby be eliminated.
B) All unemployment is caused by government intervention in the economy.
C) All unemployment arises from firms being unwilling to hire extra workers.
D) Even competitive labour markets cannot be relied upon to eliminate involuntary unemployment.
E) Monetary policy is rarely effective at reducing unemployment.
Correct Answer:
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