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:

Judicial Review

The process by which courts examine the actions of the three branches of government to ensure they comply with the Constitution.

Constitutional

Relating to an established system of fundamental principles according to which a state or other organization is governed.

Legislative

Pertaining to the process of making or enacting laws.

Branches Of Government

Refers to the division of government responsibilities into distinct sectors to prevent any one group from gaining too much power, typically including the executive, legislative, and judicial branches.