According to Classical Economists,the Increase in Unemployment in Recessions Is

question 20

Multiple Choice

According to classical economists,the increase in unemployment in recessions is caused by

• A)slack aggregate demand.
• B)the failure of wages to adjust to restore equilibrium in the labour market.
• C)the power of labour unions,which prevent firms from cutting wages.
• D)a mismatch of workers and jobs.

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Definitions:

Sales

Revenue generated from the sale of goods or services.

Total Assets

The sum of all current and long-term assets owned by a company, reflected on the balance sheet.

Net Sales

The revenue from goods or services sold by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

ROE

Return on Equity, a profitability measure that calculates the ability of a company to generate profits from its shareholders' equity.