An advocate of the classical model of the economy would claim that unemployment is created when the ____ is above its equilibrium level in the ______?

Related Mcqs:

Even though explicit contracts may lead to layoffs during recessions explicit contracts may still be efficient because such contracts ?

A. minimize negotiation costs B. minimize unemployment effects C. guarantee that only the least productive workers will be laid off. D. will equitable spread the layoffs among junior and senior workers...

The classical model of macroeconomics assumes ?

A. wages and prices are sticky B. wages and prices are flexible C. the economy may operate below full capacity D. the economy is always at full capacity E. A and C F. B and D...

The classical view of the labor market is basically consistent with the assumption of _________ aggregate supply curve?

A. a vertical (or almost vertical) B. a downward sloping C. a horizontal (or almost horizontal) D. an upward sloping...

According to the classical economists, those who are not working ?

A. have chosen not to work at the market wage B. have given up looking for a job but would accept a job at the current wage if one were offered to them. C. are too productive to be hired at the current wage D. are unable to find a job at the current wage … According to the classical economists, those who are not working ?Read More...

In the classical model, potential output cannot be increased by ?

A. monetary growth B. better technology C. more capital D. higher labor supply...