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

question 90

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)unemployment is always voluntary.
• 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:

Symptoms

Observable signs or experiences reported by an individual, indicating a disease, disorder, or condition.

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