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 labour market.
C) the power of labour unions,which prevent firms from cutting wages.
D) a mismatch of workers and jobs.
Correct Answer:
Verified
Q32: When,because of hiring and firing costs,firms retain
Q33: Assuming that money is neutral,a reduction in
Q34: If the utilization rates of capital and
Q35: The formula Y/(KᵃN¹⁻ᵃ)provides a calculation of
A)x-efficiency.
B)dynamic efficiency.
C)economywide
Q36: Given data on capital (K),labour (N),and output
Q38: Classical economists oppose government intervention in the
Q39: Why does a temporary increase in government
Q40: Labour hoarding occurs
A)when firms keep good workers
Q41: You and a friend are arguing over
Q42: Which of the following equations is most
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