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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