In Order for the Classical Model to Explain Expansions and Recessions,which

question 58

Multiple Choice

In order for the classical model to explain expansions and recessions,which of the following would have to be true?

• A) Labor supply could not change.
• B) The labor market equilibrium would have to change suddenly and significantly.
• C) Labor demand could not change.
• D) The labor market equilibrium would have to change slowly.
• E) The labor market equilibrium could not move.