Why Is There NO Persistent Unemployment in the Classical Model

question 75

Multiple Choice

Why is there NO persistent unemployment in the classical model?

• A) The wage level adjusts to eliminate unemployment.
• B) The interest rate adjusts to eliminate unemployment.
• C) The rate of economic growth is always high enough to allow those who want to work at current wages to find jobs.
• D) Unionization creates job security for workers.

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Definitions:

Nociceptors

Sensory receptors that detect harmful stimuli, sending pain signals to the brain in response to potentially damaging or dangerous conditions.

Pitch

The perceived frequency of a sound, determining how high or low it sounds.

Auditory Canal

The tube that runs from the outer ear to the middle ear, transmitting sound waves to the eardrum.

Cochlea

A spiral-shaped cavity located within the inner ear, instrumental in converting sound vibrations into nerve impulses for auditory perception.