In the Classical Model,achieving a Full-Employment Level of Output

question 29

Multiple Choice

In the classical model,achieving a full-employment level of output

• A) requires a modest amount of government intervention.
• B) is a temporary state resulting from flexible wages and prices.
• C) is possible because competition bids wage rates down to the point where everyone who really wants a job can have one.
• D) is based on the assumption that there is no saving in the economy because all the income created is spent.
• E) becomes more and more difficult to attain as labor-saving technology throws more and more workers into unemployment.

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Definitions:

Incorporating

The process of legally declaring a body as a corporation, thereby enabling it to enjoy legal rights, incur liabilities, and conduct business.

Simple Reflexes

Basic, involuntary motor responses triggered by specific stimuli that are present from birth.

Sensorimotor Substage

The phases within the first stage of Piaget's theory of cognitive development, characterized by the development of sensory and motor abilities in infants.

First Month

Refers to the initial month of a period, which can relate to the life of an infant, the start of a project, or any new beginning.