A Weakness in the Classical Economic Claim That a Recession

question 29

Multiple Choice

A weakness in the classical economic claim that a recession is caused by a decrease in labor demand curve is

• A) that labor demand never changes
• B) that labor demand increases during a recession
• C) that labor supply decreases during a recession
• D) the confusion between a shift of the labor demand curve and a movement along that curve
• E) the impossibility in the classical model of total spending ever being deficient

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Definitions:

Alien Act

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The period in American history before the Civil War, noted for its economic, social, and political divisions between the North and the South.

Inaugural Address

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George W. Bush

The 43rd President of the United States, serving from 2001 to 2009, known for leading the country through the September 11 attacks and initiating the Iraq War.