Classical Economists Believed I. There Could Be Temporary Periods of Unemployment

question 88

Multiple Choice

Classical economists believed
I. there could be temporary periods of unemployment.
II. emphasis should be placed on the long run, and in the long run all would be set right
Because of the smooth functioning of the price system.
III. the Great Depression would be a short-run aberration.

• A) I only
• B) I and II only
• C) II only
• D) I, II, and III

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Definitions:

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels of government, such as both state and federal taxes on the same income.

S Corporation

A special designation for a corporation that allows income, losses, deductions, and credits to be passed through to shareholders for tax purposes.

Dual Purpose Corporation

A business entity designed to operate for both profit and to achieve a social or charitable goal.

General Partnership

A partnership in which the partners divide profits and management responsibility and share unlimited personal liability for the partnership’s debts.