The Classical Model Explains Away Unemployment as a Long-Run Problem

question 61

Multiple Choice

The classical model explains away unemployment as a long-run problem by assuming that

• A) coordination in labor markets will occur within an acceptable period of time
• B) the economy consists of multiple,coordinated sectors
• C) it causes firms to cut back on their long-run production plans
• D) what is a problem during one period will seem more like an opportunity for economic growth during another period
• E) higher saving will stimulate increased investment

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