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Classical Employment Theory
An economic theory suggesting that the market for labor will always clear, meaning unemployment would only be temporary and the labor market would adjust through wage changes.
Loanable Funds Market
A theoretical market in which borrowers and lenders negotiate loans or savings, determining the interest rates through supply and demand for funds.
Unemployment
The situation of being jobless and actively looking for work but unable to find a job.
Classical Macroeconomic Model
An economic theory that emphasizes the importance of classical concepts like full employment, supply and demand, and the self-regulating nature of markets.
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