The Market-Clearing and Non-Market-Clearing Theories of Unemployment Both Agree That

question 112

Multiple Choice

The market-clearing and non-market-clearing theories of unemployment both agree that

• A)actual unemployment rates will equal the NAIRU in the long run.
• B)wages and prices are perfectly flexible.
• C)there is always involuntary unemployment.
• D)actual output adjusts only gradually to potential output.
• E)wages are rigid and adjust only over the long run.

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Definitions:

Debit/Credit

Fundamental aspects of all accounting transactions, where debits are entries on the left side, and credits are entries on the right side, used to record business transactions in the ledger.

Dividend

Money dispensed by a corporation to its owners/shareholders, generally from the company's earnings.

Investment Income

Income coming from interest payments, dividends, capital gains, and other profits made through an investment.

Associated Companies

Companies that are connected through common ownership or control but aren't subsidiaries or fully owned entities of the parent company.