Classical Economists Believed I. There Could Be Temporary Periods of Unemployment

question 88

Multiple Choice

Classical economists believed
I. there could be temporary periods of unemployment.
II. emphasis should be placed on the long run, and in the long run all would be set right
Because of the smooth functioning of the price system.
III. the Great Depression would be a short-run aberration.

• A) I only
• B) I and II only
• C) II only
• D) I, II, and III

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Definitions:

Young-Helmholtz Theory

A theory of color vision proposing that the eye perceives colors through the response of three different kinds of cones, each sensitive to red, green, or blue light.

Opponent-Process Theory

A theory that suggests emotions are regulated by mechanisms that operate in opposing pairs, such as pleasure and pain or fear and relief.

Turned "On"

Refers to activating or starting the operation of a device or system, making it ready for use.

Turned "Off"

A phrase indicating something is inactive, not in operation, or not engaged.