Which of the following types of unemployment can the classical model not explain?
A) Structural unemployment
B) Cyclical unemployment
C) Seasonal unemployment
D) Frictional unemployment
E) Temporary unemployment

Question

Quizplus · Accepted Answer

The classical model assumes that the economy operates at full employment and any unemployment is due to voluntary choices or imperfections in the labor market. Therefore, it cannot explain cyclical unemployment, which is caused by a lack of aggregate demand during recessions.

Which of the Following Types of Unemployment Can the Classical