In the Classical Model, an Increase in the Unemployment Rate

question 253

Multiple Choice

In the classical model, an increase in the unemployment rate

• A) will persist when the reduction in output is caused by a reduction in aggregate demand.
• B) will result in an increase in the price level if the reduction in output is caused by a change in aggregate demand.
• C) will likely be temporary.
• D) is a signal of demand-pull inflation.

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Definitions:

Projection

An ego defense mechanism whereby individuals attribute to other people characteristics or impulses they do not wish to acknowledge in themselves.

Defecating

The act of expelling feces from the body's large intestine through the anus.

Ego Ideal

A component of the personality comprising the standards and aspirations for behaviors that one strives to achieve.

Id

in Freudian psychoanalysis, it represents the part of the human psyche that is unconscious and contains the basic drives and instinctual desires.