A Classical Model of the Economy Predicts

question 164

Multiple Choice

A classical model of the economy predicts

• A)full employment in the long run.
• B)a 15 to 20 percent unemployment level whenever the economy is in equilibrium.
• C)the same unemployment rates as the Keynesian model.
• D)cyclical changes in the unemployment rate.

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Definitions:

Coordination

The organization of the different elements of a complex body or activity so as to enable them to work together effectively.

Departmentalization

The organizational process of dividing a business into distinct departments, each focused on a specific operational area.

Organizational Growth

The process through which a business expands its size, scope, or capabilities, often measured in terms of increased output, sales, or market share.

Entrepreneur

An individual who starts and runs a business, taking on financial risks with the aim of making a profit.