In the Classical Model, High Unemployment Due to a Change

question 157

Multiple Choice

In the classical model, high unemployment due to a change in aggregate demand

• A) can persist for an indefinite period of time.
• B) will return to its normal level quickly as wages adjust.
• C) will persist if due to a supply shock but not if due to a demand shock.
• D) never exists because unemployment can never deviate from its normal level.

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Definitions:

Self-Transcendence

According to Maslow, the striving for identity, meaning, and purpose beyond the self.

Unconditional Positive Regard

The practice of valuing a person without conditions or judgment, often emphasized in humanistic psychology as essential for healthy self-esteem and personal growth.

Self-Esteem

An individual’s overall subjective emotional evaluation of their own worth.

Conformity Pressures

Social influences that encourage individuals to match the attitudes, beliefs, or behaviors of a group.