A Weakness in the Classical Economic Claim That a Recession

question 29

Multiple Choice

A weakness in the classical economic claim that a recession is caused by a decrease in labor demand curve is

• A) that labor demand never changes
• B) that labor demand increases during a recession
• C) that labor supply decreases during a recession
• D) the confusion between a shift of the labor demand curve and a movement along that curve
• E) the impossibility in the classical model of total spending ever being deficient

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Definitions:

Mattel

A multinational toy manufacturing and entertainment company known for brands such as Barbie, Hot Wheels, and Fisher-Price.

Barbie Doll

A popular brand of fashion doll introduced by Mattel, Inc. in 1959.

Efficient Markets

These are markets where prices fully reflect all available information, making it impossible to consistently achieve higher returns than the market average.

Opportunity Cost

Overlooking possible gains from other alternatives by dedicating to one path.