According to classical economists,unemployment exists because
A)it takes time and effort for someone to find a job.
B)government activity causes unemployment.
C)the minimum wage generates unemployment.
D)workers are all identical.

Question

Quizplus · Accepted Answer

Classical economists believed that unemployment existed because it takes time and effort for someone to find a job. They believed that wages would adjust to clear the labor market, but this process takes time and during that time, some individuals may be without work. Classical economists did not believe that government activity, such as minimum wage laws, caused unemployment. They also did not assume that all workers are identical.

According to Classical Economists,unemployment Exists Because