Pigou's explanation of the existence of unemployment required
A)wage "stickiness" or slowness of wages to adjust to changes in market conditions.
B)fixed goods price or slowness of prices to adjust to changes in market conditions.
C)Churchill's introduction of unemployment compensation.
D)all of the above.

Question

Quizplus · Accepted Answer

Pigou believed that wage stickiness, or the slowness of wages to adjust to changes in market conditions, was the primary reason for unemployment. This meant that even if there were jobs available, workers would not accept lower wages and employers would be unwilling to offer higher wages, leading to a mismatch between supply and demand in the labor market.

Pigou's Explanation of the Existence of Unemployment Required