Which of the Following Is a Central Argument of Non-Market-Clearing

question 17

Multiple Choice

Which of the following is a central argument of non-market-clearing theories of unemployment?

• A)Labour markets will clear and unemployment will thereby be eliminated.
• B)All unemployment is caused by government intervention in the economy.
• C)All unemployment arises from firms being unwilling to hire extra workers.
• D)Even competitive labour markets cannot be relied upon to eliminate involuntary unemployment.
• E)Monetary policy is rarely effective at reducing unemployment.

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