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:

Situational Factors

Environmental circumstances or conditions that can affect behavior and decision-making.

Setbacks

Obstacles or reversals in progress that delay or prevent the achievement of goals.

Stressful Circumstances

Situations or periods causing significant stress, often due to pressure, uncertainty, or the demands placed upon an individual.

Optimists

Individuals who generally expect positive outcomes and focus on the good aspects of life.