Unemployment Is an Automatic Stabilizers

question 21

True/False

Unemployment is an automatic stabilizers.

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Definitions:

Purely Competitive Firm

A firm that operates in a market where there are many buyers and sellers, all producing homogeneous products, leading to no single firm being able to influence market price.

Total Cost

The sum of all expenses, both fixed and variable, incurred in producing goods or services.

Purely Competitive Industry

An industry characterized by many sellers offering identical products, where no single seller can influence the market price.

Long-run Equilibrium

A state in which all inputs and outputs in an economy are optimally allocated, and all firms make zero economic profit, reflecting no incentives for market entry or exit.