Why Is Persistent Unemployment a Possibility in the Keynesian Model

question 73

Multiple Choice

Why is persistent unemployment a possibility in the Keynesian model but NOT in the classical model?

• A) The Keynesian model assumes that people work for motives other than those of earning an income for themselves and supporting a family.
• B) The Keynesian model assumes that nominal wages are inflexible downward.
• C) The Keynesian model assumes that the level of real GDP is inflexible.
• D) The Keynesian model assumes that workers can lose their jobs to foreign competition during economic downturns.

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Definitions:

Adult Phobias

Intense, irrational fears experienced by adults, often rooted in past experiences or triggered by specific objects or situations.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, through which an association is made between a behavior and a consequence for that behavior.

Behaviorists

Psychologists who focus on observable behaviors and the ways in which learning influences behavior, often through conditioning.

B. F. Skinner

A psychologist and behaviorist who developed the theory of operant conditioning - the idea that behavior is determined by its consequences.