________ economics includes the idea that labor markets don't always clear due to wage rigidities.
A) Classical
B) New Classical
C) Monetarist
D) Keynesian

Question

Quizplus · Accepted Answer

This statement aligns with the Keynesian perspective, as it emphasizes the role of market imperfections and the potential for unemployment to persist even in the long run due to sticky wages. Classical economics assumes that markets always clear, while New Classical and Monetarist perspectives prioritize the role of monetary policy in stabilizing the economy.

________ Economics Includes the Idea That Labor Markets Don't Always