According to the classical model,if there are too many elementary school teachers in the labor market,
A) the government should institute a retraining program to give the unemployed teachers new job skills
B) the wages for elementary teachers will fall,eventually causing the number of excess teachers to shrink
C) the wage for elementary teachers will increase for those who are employed,but unemployment of teachers will remain high
D) this situation provides an example of cyclical unemployment,which often occurs in the long run
E) people will quit training to become elementary school teachers and soon there will be a shortage in this labor market

Question

Quizplus · Accepted Answer

According to the classical model, if there is an excess supply of labor in a market, such as elementary school teachers, wages will fall until the excess supply of labor is eliminated. Therefore, in this case, the wages for elementary teachers will fall, eventually causing the number of excess teachers to shrink. This process is known as the adjustment mechanism. Option A is not supported by the classical model, as the government does not typically intervene in the labor market. Option C is also incorrect, as in the classical model, wages adjust until there is no excess supply of labor, and therefore there would not be persistently high unemployment. Option D is not relevant to this question, and option E makes no sense based on the classical model.

According to the Classical Model,if There Are Too Many Elementary