Keynesians are skeptical of the classical theory that recessions are periods of increased mismatch between workers and jobs because
A)help-wanted advertising falls during recessions.
B)help-wanted advertising rises during recessions.
C)workers spend a lot of time searching for work in recessions.
D)people are indifferent between being employed or not.

Question

Quizplus · Accepted Answer

Keynesians argue that during recessions, the demand for labor falls, which is reflected in decreased help-wanted advertising. This contradicts the classical theory's emphasis on mismatches in the labor market as the primary cause of recessions.

Keynesians Are Skeptical of the Classical Theory That Recessions Are