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:

Psychic Energy

In psychoanalytic theory, the force that drives the functioning of the personality, channeled through various structures of the mind.

Anticipation

The act of looking forward or predicting a future event based on current knowledge or expectations.

Reconstruction

The process of rebuilding, reforming, or remaking something, often used in psychological contexts to refer to therapies aimed at reconstructing thought patterns or perspectives.

Test Against Reality

involves verifying ideas, theories, or perceptions by comparing them with factual, real-world occurrences or principles.