The New Keynesian and New Classical theories of unemployment both agree that
A) actual output adjusts only gradually to potential output.
B) wages are rigid and adjust only over the long run.
C) actual unemployment rates will equal the NAIRU in the long run.
D) wages and prices are perfectly flexible.
E) unemployment is always voluntary.
Correct Answer:
Verified
Q80: Other things being equal, a macroeconomic shock
Q81: Other things being equal, many economists believe
Q82: Many economists believe that long- run economic
Q83: When the growth rate of the labour
Q84: Involuntary unemployment in a labour market is
Q86: A decrease in the share of the
Q87: What economists call "involuntary unemployment" occurs when
A)the
Q88: Suppose the Canadian government implements a new
Q89: If the actual unemployment rate is equal
Q90: In some European countries, labour- market policies
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents