A Central Argument of Non-Market-Clearing Theories of Unemployment Is That

question 30

Multiple Choice

A central argument of non-market-clearing theories of unemployment is that

• 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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Definitions:

Problem-solving

The process of identifying a challenge, difficulty, or discrepancy and applying logical reasoning or creativity to find a solution.

Decision-making

The cognitive process of making a choice among multiple options or courses of action.

Nonprogrammed

Decisions or actions that are made to address unique, non-recurring situations that require specific handling.

Programmed

Refers to actions, decisions, or operations that are established in advance through a set of rules or algorithms.