One possible explanation for the existence of unemployment is:
A) that the wage does not adjust immediately to changes in labor demand.
B) the quantity of labor is sticky downward and does not adjust to an increase in wages.
C) the labor market is perfectly competitive.
D) labor supply always shifts in such a way as to lead to unemployment.

Question

Quizplus · Accepted Answer

Unemployment can occur when the wage does not adjust immediately to changes in labor demand. For example, if there is a decrease in demand for labor, wages may not adjust downward quickly enough to maintain full employment, leading to some workers being unemployed.

One Possible Explanation for the Existence of Unemployment Is