In What Sense Is Unemployment Voluntary in Real Business Cycle

question 9

Essay

In what sense is unemployment voluntary in real business cycle and classical models? In what sense is unemployment involuntary in Keynesian and new Keynesian models?

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Definitions:

Under 18

A term typically referring to individuals who are below the age of 18, often used in contexts regarding employment, legal responsibilities, and rights.

Poor

The state of having insufficient financial resources to meet basic living expenses such as food, clothing, and housing, resulting in a low standard of living.

Lower Two Quintiles

Refers to the bottom 40% of the population, often in terms of income distribution, highlighting socioeconomic status.

Income Received

The total earnings obtained by an individual or entity, including wages, salaries, profits, rents, and other forms of financial gains.