Classical Employment Theory Holds That

question 182

Multiple Choice

Classical employment theory holds that

• A)wages are flexible upward and downward in the long run.
• B)an excess of saving over investment (a surplus in the loanable funds market)at any given interest rate will cause the interest rate to fall.
• C)unemployment will cause wages and prices to decline.
• D)All of the choices are true of classical employment theory.

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Definitions:

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Phonological Loop

A component of working memory model that deals with auditory information and preserves the order of information.

Declarative Memory

The type of long-term memory that stores facts and events that can be consciously recalled or "declared."

Rehearsal

A cognitive process involving the repetitive review of information to enhance memory retention.